Crypto-Asset Reporting Framework 

Crypto Asset Reporting Framework

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Crypto-Asset Reporting Framework and Amendments to the Common Reporting Standard

This publication contains the rules and commentary of the Crypto-Asset Reporting Framework (“CARF”)
and a set of amendments to the Common Reporting Standard (“CRS”), as approved by the OECD
Committee on Fiscal Affairs in August 2022.
The CARF, developed in light of the rapid growth of the Crypto-Asset market and pursuant to a mandate
from the G20, provides for the reporting of tax information on transactions in Crypto-Assets in a
standardised manner, with a view to automatically exchanging such information with the jurisdictions of
residence of taxpayers on an annual basis. The CARF consists of rules and commentary which set out: i)
the scope of Crypto-Assets to be covered; ii) the Entities and individuals subject to data collection and
reporting requirements; iii) the transactions subject to reporting, as well as the information to be reported
in respect of such transactions; and iv) the due diligence procedures to identify Crypto-Asset Users and
Controlling Persons, and to determine the relevant tax jurisdictions for reporting and exchange purposes.
The amendments to the CRS, which was first published by the OECD in 2014 and designed to promote
tax transparency with respect to financial accounts held abroad, bring in its scope certain electronic money
products and Central Bank Digital Currencies. In light of the CARF, changes have also been made to
ensure that indirect investments in Crypto-Assets through derivatives and investment vehicles are now
covered by the CRS. In addition, amendments have been made to improve the operation of the CRS based
on the experience gained by governments and business in over 100 jurisdictions that have implemented
the CRS, including by strengthening its due diligence and reporting requirements and providing a carveout for genuine non-profit organisations.

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Abbreviations and acronyms

AML

Anti-Money Laundering

API

Application Programming Interface

ATM

Automated Teller Machine

CARF

Crypto-Asset Reporting Framework

CBDC

Central Bank Digital Currency

CBI

Citizenship by Investment

CRS

Common Reporting Standard

FATCA

Foreign Account Tax Compliance Act

FATF

Financial Action Task Force

IT

Information Technology

KYC

Know Your Customer

LEI

Legal Entity Identifier

NFE

Non-Financial Entity

NFT

Non-Fungible Token

OECD

Organisation for Economic Cooperation and Development

RBI

Residence by Investment

TIN

Taxpayer Identification Number

XML

Extensible Mark-up Language

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Table of contents

Foreword

3

Abbreviations and acronyms

4

Executive summary

6

Part I – Crypto-Asset Reporting Framework

8

Introduction

9

Rules

14

Commentary

26

Part II – Amendments to the Common Reporting Standard

62

Introduction

63

Rules

69

Commentary

76

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Executive summary

The Common Reporting Standard was designed to promote tax transparency with respect to financial
accounts held abroad. Since the CRS was adopted in 2014, over seven years have passed, in which over
100 jurisdictions have implemented the CRS and financial markets have continued to evolve, giving rise
to new investment and payment practices. The OECD, working together with G20 countries, has therefore
conducted the first comprehensive review of the CRS in consultation with participating jurisdictions,
financial institutions and other stakeholders.
This has resulted in two outcomes:

a new tax transparency framework which provides for the automatic exchange of tax information
on transactions in Crypto-Assets in a standardised manner with the jurisdictions of residence of
taxpayers (referred to as the “Crypto-Asset Reporting Framework” or “CARF”); and

a set of amendments to the CRS.

Crypto-Asset Reporting Framework
One major development that the OECD has sought to address is the emergence of Crypto-Assets, which
can be transferred and held without interacting with traditional financial intermediaries and without any
central administrator having full visibility on either the transactions carried out, or the location of CryptoAsset holdings.
These developments have reduced tax administrations’ visibility on tax-relevant activities carried out within
the sector, increasing the difficulty of verifying whether associated tax liabilities are appropriately reported
and assessed, which poses a significant risk that recent gains in global tax transparency will be gradually
eroded. In light of the specific features of the Crypto-Asset markets, the OECD, working with G20 countries,
has developed the CARF, a dedicated global tax transparency framework which provides for the automatic
exchange of tax information on transactions in Crypto-Assets in a standardised manner with the
jurisdictions of residence of taxpayers on an annual basis.
The CARF consists of rules and commentary that can be transposed into domestic law to collect
information from Reporting Crypto-Asset Service Providers with a relevant nexus to the jurisdiction
implementing the CARF. These rules and commentary have been designed around four key building
blocks: i) the scope of Crypto-Assets to be covered; ii) the Entities and individuals subject to data collection
and reporting requirements; iii) the transactions subject to reporting, as well as the information to be
reported in respect of such transactions; and iv) the due diligence procedures to identify Crypto-Asset
Users and Controlling Persons and to determine the relevant tax jurisdictions for reporting and exchange
purposes.

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Amendments to the Common Reporting Standard
Developed alongside the CARF, the first comprehensive review of the CRS has resulted in amendments
to bring new financial assets, products and intermediaries within its scope, because they are potential
alternatives to traditional financial products, while avoiding duplicative reporting with that foreseen in the
CARF. Additional amendments have also been made to enhance the reporting outcomes under the CRS,
including through the introduction of more detailed reporting requirements, the strengthening of the due
diligence procedures, the introduction of a new, optional Non-Reporting Financial Institution category for
Investment Entities that are genuine non-profit organisations and the creation of a new Excluded Account
category for capital contribution accounts. In addition, further details have been included in the
Commentary to the CRS in a number of locations to increase consistency in the application of the CRS
and to incorporate previously released Frequently-Asked Questions and interpretative guidance.

Next steps
Work is ongoing on an implementation package to ensure the consistent domestic and international
application and effective implementation of the CARF. The implementation package will consist of a
framework of bilateral or multilateral competent authority agreements or arrangements for the automatic
exchange of information collected under the CARF, IT-solutions to support the exchange of information
and a further elaboration of the requirements set out in Section V of the CARF.
Similarly, work will also progress to put in place the appropriate mechanisms to automatically exchange
information pursuant to the amended CRS.
Finally, coordinated implementation timelines for both the CARF and amended CRS will be agreed.

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Part I – Crypto-Asset
Reporting Framework

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Introduction
Crypto-Assets: The impact on financial markets
1.
The market for Crypto-Assets (including cryptocurrencies, as well as cryptography-based tokens)
is growing rapidly. This is also affecting tax administrations, which must adapt to the growing role of CryptoAssets. In particular, several characteristics of Crypto-Assets are likely to pose novel challenges in tax
administrations’ efforts to ensure taxpayer compliance.
2.
Firstly, Crypto-Assets’ reliance on cryptography and distributed ledger technology, in particular
blockchain technology, means they can be issued, recorded, transferred and stored in a decentralised
manner, without the need to rely on traditional financial intermediaries or central administrators.
3.
In addition, the Crypto-Asset market has given rise to a new set of intermediaries and other service
providers, such as Crypto-Asset exchanges and wallet providers, which may currently only be subject to
limited regulatory oversight. Crypto-Asset exchanges typically facilitate the purchase, sale and exchange
of Crypto-Assets for other Crypto-Assets or Fiat Currencies. Wallet providers offer digital “wallets”, which
individuals can use to store their Crypto-Assets via authorisation through public and private keys. These
services may either be provided in online (i.e. “hot”) wallets, or via service providers offering products
allowing individuals to store their Crypto-Assets offline on downloaded (i.e. “cold”) wallets. Both types of
products are relevant for tax authorities.

Repercussions of Crypto-Assets on global tax transparency
4.
The Crypto-Asset market, including both the Crypto-Assets offered, as well as the intermediaries
and other service providers involved, poses a significant risk that recent gains in global tax transparency
will be gradually eroded. In particular, the Crypto-Asset market is characterised by a shift away from
traditional financial intermediaries, the typical information providers in third-party tax reporting regimes,
such as the Common Reporting Standard, to a new set of intermediaries and other service providers which
only recently became subject to financial regulation and are frequently not yet subject to tax reporting
requirements with respect to their users. Furthermore, the ability of individuals to hold Relevant CryptoAssets in wallets unaffiliated with any service provider and transfer such Relevant Crypto-Assets across
jurisdictions, presents the risk that Relevant Crypto-Assets are used for illicit activities or to evade tax
obligations. Overall, the characteristics of the Crypto-Asset sector have reduced tax administrations’
visibility on tax-relevant activities carried out within the sector, increasing the difficulty of verifying whether
associated tax liabilities are appropriately reported and assessed.
5.
The CRS, published by the OECD in 2014, is a key tool in ensuring transparency on cross-border
financial investments and in fighting offshore tax evasion. The CRS has improved international tax
transparency by requiring committed jurisdictions to obtain information on offshore accounts held with
Financial Institutions and automatically exchange that information with the jurisdictions of residence of
taxpayers on an annual basis. However, Relevant Crypto-Assets will in most instances not fall within the
scope of the CRS, which applies to traditional Financial Assets and Fiat Currencies held in accounts with

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Financial Institutions. Even where Relevant Crypto-Assets do fall within the definition of Financial Assets
for purposes of the definition of Custodial Account, they can be owned either directly by individuals in cold
wallets or via Crypto-Asset exchanges that do not have reporting obligations under the CRS (if they are
not Financial Institutions), and are therefore unlikely to be reported to tax authorities in a reliable manner.
6.
Therefore, the current scope of assets, as well as the scope of obliged entities, covered by the
CRS do not provide tax administrations with adequate visibility on when taxpayers engage in tax-relevant
transactions in, or hold, Relevant Crypto-Assets.

Increasing global tax transparency with respect to Crypto-Assets
7.
Recognising the importance of addressing the above-mentioned tax compliance risks with respect
to Relevant Crypto-Assets, the OECD has developed the Crypto-Asset Reporting Framework, designed to
ensure the collection and automatic exchange of information on transactions in Relevant Crypto-Assets.
The CARF consists of rules and commentary that can be transposed into domestic law to collect
information from Reporting Crypto-Asset Service Providers with a relevant nexus to the jurisdiction
implementing the CARF.
8.
In addition to the rules and commentary, work is ongoing on an implementation package to ensure
the consistent domestic and international application of the CARF. The implementation package, which
will form an integral part of the CARF, will consist of:

A framework of bilateral or multilateral competent authority agreements or arrangements for the
automatic exchange of information collected under the CARF with jurisdiction(s) of residence of
the Crypto-Asset Users, based on relevant tax treaties, tax information exchange agreements, or
the Convention on Mutual Administrative Assistance in Tax Matters;

IT-solutions to support the exchange of information, in particular a dedicated XML schema; and

A further elaboration of the requirements set out in Section V of the CARF, similar to Section IX of
the Common Reporting Standard, to ensure effective implementation of the CARF by Reporting
Crypto-Asset Service Providers and participating jurisdictions.

9.
Separately, work will be undertaken to ensure a broad implementation of the CARF as the single
global reporting framework for Relevant Crypto-Assets.
10.
It is acknowledged that Crypto-Asset markets, including the types of Crypto-Assets offered, the
Entities and individuals active in, and the technology supporting the markets, are evolving rapidly. The
OECD is undertaking further technical work to elaborate the rules regarding Reportable Retail Payment
Transactions (see paragraph 24 below) to ensure adequate tax reporting on Relevant Crypto-Assets used
for the purchase of goods or services. The elaborated rules will be delivered as soon as is feasible and
preferably in a manner that such elaborated rules can be applied simultaneously with the current rules in
the CARF on Reportable Retail Payment Transactions.
11.
It is also anticipated that the OECD will continue developing guidance to support the consistent
application of the CARF, including on the definition of Relevant Crypto-Assets and in particular the criteria
for adequately determining that a Crypto-Asset can or cannot be used for payment or investment purposes.
Furthermore, the OECD stands ready to proceed with future amendments to the CARF, in case this is
needed to ensure adequate tax reporting with respect to Relevant Crypto-Assets, as well as sufficient
global coverage of the CARF. In this respect, particular attention will be given to the development of
decentralised finance.

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The rules and Commentary of the Crypto-Asset Reporting Framework
12.
The rules and commentary of the CARF have been designed around four key building blocks: i)
the scope of Crypto-Assets to be covered; ii) the Entities and individuals subject to data collection and
reporting requirements; iii) the transactions subject to reporting as well as the information to be reported in
respect of such transactions; and iv) the due diligence procedures to identify Crypto-Asset Users and the
relevant tax jurisdictions for reporting and exchange purposes.

Scope of Crypto-Assets to be covered
13.
The proposed definition of Crypto-Assets under the CARF focuses on the use of cryptographically
secured distributed ledger technology, as this is a distinguishing factor underpinning the creation, holding
and transferability of Crypto-Assets. The definition also includes a reference to “similar technology” to
ensure it can include new technological developments that emerge in the future and that operate in a
functionally similar manner to Crypto-Assets and raise similar tax risks. The definition of Crypto-Assets
thereby targets those assets that can be held and transferred in a decentralised manner, without the
intervention of traditional financial intermediaries, including stablecoins, derivatives issued in the form of a
Crypto-Asset and certain non-fungible tokens (“NFTs”).
14.
The term Relevant Crypto-Assets (i.e. Crypto-Assets that give rise to reporting on Relevant
Transactions) excludes from reporting requirements three categories of Crypto-Assets that pose limited
tax compliance risks. The first category are those Crypto-Assets which the Reporting Crypto-Asset Service
Provider has adequately determined cannot be used for payment or investment purposes. This exclusion
builds on the scope of the virtual asset definition of the Financial Action Task Force (“FATF”) and seeks to
exclude Crypto-Assets that do not have the capacity of being used for payment or investment purposes.
The second category are Central Bank Digital Currencies, representing a claim in Fiat Currency on an
issuing Central Bank, or monetary authority, which function similar to money held in a traditional bank
account. The third category covers Specified Electronic Money Products that represent a single Fiat
Currency and are redeemable at any time in the same Fiat Currency at par value as a regulatory matter,
in addition to meeting certain other requirements. Reporting on Central Bank Digital Currencies and certain
Specified Electronic Money Products held in Financial Accounts will be included within the scope of the
CRS.
15.
With the above-mentioned considerations in mind, the definition of Relevant Crypto-Assets means
that in most cases Relevant Crypto-Assets covered under the CARF also fall within the scope of the FATF
Recommendations, ensuring the due diligence requirements can, as far as possible, build on existing
AML/KYC obligations.

Intermediaries and other service providers in scope
16.
As noted above, intermediaries and other service providers facilitating exchanges between
Relevant Crypto-Assets, as well as between Relevant Crypto-Assets and Fiat Currencies, play a central
role in the Crypto-Asset market. As such, it is proposed that those Entities or individuals that as a business
provide services effectuating Exchange Transactions in Relevant Crypto-Assets, for or on behalf of
customers, would be considered Reporting Crypto-Asset Service Providers under the CARF.
17.
Such intermediaries and other service providers are expected to have the best and most
comprehensive access to the value of the Relevant Crypto-Assets and the Exchange Transactions carried
out. These intermediaries and other service providers also fall within the scope of obliged entities for FATF
purposes (i.e. virtual asset service providers). As such, they are in a position to collect and review the
required documentation of their customers, including on the basis of AML/KYC documentation.

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18.
The above functional definition would cover not only exchanges, but also other intermediaries and
other service providers providing exchange services such as brokers and dealers in Relevant CryptoAssets and operators of Relevant Crypto-Asset ATMs. Further, taking into account the October 2021
updated guidance of the FATF on virtual asset service providers, the commentary clarifies the scope of
application of the CARF to certain decentralised exchanges.
19.
With respect to the reporting nexus, Reporting Crypto-Asset Service Providers will be subject to
the rules when they are (i) tax resident in, (ii) both incorporated in, or organised under the laws of, and
have legal personality or are subject to tax reporting requirements in, (iii) managed from, (iv) having a
regular place of business in, or (v) effectuating Relevant Transactions through a branch based in, a
jurisdiction adopting the rules. The CARF also contains rules to avoid duplicative reporting in case a
Reporting Crypto-Asset Service Provider has nexus with more than one jurisdiction by creating a hierarchy
of nexus rules, and including a rule for cases where a Reporting Crypto-Asset Service Provider has nexus
in two jurisdictions based on the same type of nexus.

Reporting requirements
20.
The following three types of transactions are Relevant Transactions that are reportable under the
CARF:

exchanges between Relevant Crypto-Assets and Fiat Currencies;

exchanges between one or more forms of Relevant Crypto-Assets; and

Transfers (including Reportable Retail Payment Transactions) of Relevant Crypto-Assets.

21.
Transactions will be reported on an aggregate basis by type of Relevant Crypto-Asset and
distinguishing outward and inward transactions. In order to enhance the usability of the data for tax
administrations, the reporting on Exchange Transactions is to be distinguished between Crypto-Asset-toCrypto-Asset and Crypto-Asset-to-Fiat Currency transactions. Reporting Crypto-Asset Service Providers
will also categorise Transfers by Transfer type (e.g. airdrops, income derived from staking, or a loan), in
instances where they have such knowledge.
22.
The CARF foresees that for Crypto-Asset-to-Fiat Currency transactions, the fiat amount paid or
received is reported as the acquisition amount or gross proceeds. For Crypto-Asset-to-Crypto-Asset
transactions it is proposed that the value of the Crypto-Asset (at acquisition) and the gross proceeds (upon
disposal) must (also) be reported in Fiat Currency. In line with this approach, in respect of Crypto-Assetto-Crypto-Asset transactions, the transaction would be split into two reportable elements, i.e.: (i) a disposal
of Crypto-Asset A (the reportable gross proceeds based on the market value at the time of disposal); and
(ii) an acquisition of Crypto-Asset B (the reportable acquisition value based on the market value at the time
of acquisition). The Commentary to the CARF furthermore contains detailed valuation rules for Relevant
Crypto-Assets subject to reporting on the basis of a Transfer.
23.
Taxpayers’ holdings and transfers of Relevant Crypto-Assets outside the scope of Reporting
Crypto-Asset Service Providers subject to reporting are also relevant to tax authorities. In order to increase
visibility on these, the CARF requires reporting of the number of units and the total value of Transfers of
Relevant Crypto-Assets effectuated by a Reporting Crypto-Asset Service Provider, on behalf of a CryptoAsset User, to wallets not associated with a virtual asset service provider or a financial institution. In case
this information gives rise to compliance concerns, tax administrations could then request more detailed
information on the wallet addresses associated with a Crypto-Asset User through existing exchange of
information channels.
24.
Finally, the CARF also applies to certain instances where a Reporting Crypto-Asset Service
Provider processes payments on behalf of a merchant accepting Relevant Crypto-Assets in payment for
goods or services, focussing on high-value transactions (i.e. Reportable Retail Payment Transactions). In

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such instances, the Reporting Crypto-Asset Service Provider is required to also treat the customer of the
merchant as a Crypto-Asset User (provided the Reporting Crypto-Asset Service Provider is required to
verify the identity of the customer on the basis of domestic anti-money laundering rules and by virtue of
effectuating the Reportable Retail Payment Transaction), and report with respect to the value of the
transaction on that basis. This information is expected to provide tax administrations with information on
cases where Relevant Crypto-Assets are used to purchase goods or services, therewith realising a capital
gain on the disposal of such Relevant Crypto-Assets.

Due diligence procedures
25.
The CARF contains the due diligence procedures to be followed by Reporting Crypto-Asset
Service Providers in identifying their Crypto-Asset Users, determining the relevant tax jurisdictions for
reporting purposes and collecting relevant information needed to comply with the reporting requirements
under the CARF. The due diligence requirements are designed to allow Reporting Crypto-Asset Service
Providers to efficiently and reliably determine the identity and tax residence of their Individual and Entity
Crypto-Asset Users, as well as of the natural persons controlling certain Entity Crypto-Asset Users.
26.
The due diligence procedures build on the self-certification-based process of the CRS, as well as
existing AML/KYC obligations enshrined in the 2012 FATF Recommendations, including updates in June
2019 with respect to obligations applicable to virtual asset service providers.

Interaction between the Crypto-Asset Reporting Framework and the CRS
27.
As the CARF is a separate and complementary framework, there will be some Entities reporting
under both the CRS and the CARF. The CARF was designed to report information on Crypto-Assets to
address tax compliance risks. Nonetheless, to reduce reporting burdens, particular attention was given to
the efficient and frictionless interaction of the CARF with the CRS, as reflected in the following features:

The definition of Relevant Crypto-Assets excludes Specified Electronic Money Products and
Central Bank Digital Currencies from the scope of the CARF, as reporting on these assets is
ensured under the CRS;

As there are certain assets that qualify both as Relevant Crypto-Assets under the CARF and as
Financial Assets under the CRS (e.g. shares issued in crypto form), the CRS contains an optional
provision to switch-off gross proceeds reporting under the CRS if such information is reported
under the CARF;

Indirect investments in Relevant Crypto-Assets through traditional financial products, such as
derivatives or interests in investment vehicles, are covered by the CRS; and

To the extent possible and appropriate, the due diligence procedures are consistent with the CRS
due diligence rules, to minimise burdens on Reporting Crypto-Asset Service Providers, in particular
when they are also subject to CRS obligations as Reporting Financial Institutions. In particular, the
CARF allows Reporting Crypto-Asset Service Providers that are also subject to the CRS to rely on
the due diligence procedures for New Accounts performed for CRS purposes.

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Rules
Section I: Obligations of Reporting Crypto-Asset Service Providers
A. A Reporting Crypto-Asset Service Provider is subject to the reporting and due diligence
requirements in Sections II and III in [Jurisdiction], if it is:
1. an Entity or individual resident for tax purposes in [Jurisdiction];
2. an Entity that (a) is incorporated or organised under the laws of [Jurisdiction] and (b) either
has legal personality in [Jurisdiction] or has an obligation to file tax returns or tax information
returns to the tax authorities in [Jurisdiction] with respect to the income of the Entity;
3. an Entity managed from [Jurisdiction]; or
4. an Entity or individual that has a regular place of business in [Jurisdiction].
B. A Reporting Crypto-Asset Service Provider is subject to the reporting and due diligence
requirements in Sections II and III in [Jurisdiction] with respect to Relevant Transactions
effectuated through a Branch based in [Jurisdiction].
C. A Reporting Crypto-Asset Service Provider that is an Entity is not required to complete the
reporting and due diligence requirements in Sections II and III it is subject to in [Jurisdiction]
pursuant to subparagraphs A(2), (3) or (4), if such requirements are completed by such Reporting
Crypto-Asset Service Provider in a Partner Jurisdiction by virtue of it being resident for tax
purposes in such Partner Jurisdiction.
D. A Reporting Crypto-Asset Service Provider that is an Entity is not required to complete the
reporting and due diligence requirements in Sections II and III it is subject to in [Jurisdiction]
pursuant to subparagraphs A(3) or (4), if such requirements are completed by such Reporting
Crypto-Asset Service Provider in a Partner Jurisdiction by virtue of it being an Entity that (a) is
incorporated or organised under the laws of such Partner Jurisdiction and (b) either has legal
personality in the Partner Jurisdiction or has an obligation to file tax returns or tax information
returns to the tax authorities in the Partner Jurisdiction with respect to the income of the Entity.
E. A Reporting Crypto-Asset Service Provider that is an Entity is not required to complete the
reporting and due diligence requirements in Sections II and III it is subject to in [Jurisdiction]
pursuant to subparagraph A(4), if such requirements are completed by such Reporting CryptoAsset Service Provider in a Partner Jurisdiction by virtue of it being managed from such Partner
Jurisdiction.
F. A Reporting Crypto-Asset Service Provider that is an individual is not required to complete the
reporting and due diligence requirements in Sections II and III it is subject to in [Jurisdiction]
pursuant to subparagraph A(4), if such requirements are completed by such Reporting CryptoAsset Service Provider in a Partner Jurisdiction by virtue of it being resident for tax purposes in
such Partner Jurisdiction.
G. A Reporting Crypto-Asset Service Provider is not required to complete the reporting and due
diligence requirements in Sections II and III in [Jurisdiction] with respect to Relevant Transactions

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it effectuates through a Branch in a Partner Jurisdiction, if such requirements are completed by
such Branch in such Partner Jurisdiction.
H. A Reporting Crypto-Asset Service Provider is not required to complete the reporting and due
diligence requirements in Sections II and III it is subject to in [Jurisdiction] pursuant to
subparagraphs A(1), (2), (3) or (4), if it has lodged a notification with [Jurisdiction] in a format
specified by [Jurisdiction] confirming that such requirements are completed by such Reporting
Crypto-Asset Service Provider under the rules of a Partner Jurisdiction pursuant a substantially
similar nexus that it is subject to in [Jurisdiction].

Section II: Reporting requirements
A. For each relevant calendar year or other appropriate reporting period, and subject to the
obligations of Reporting Crypto-Asset Service Providers in Section I and the due diligence
procedures in Section III, a Reporting Crypto-Asset Service Provider must report the following
information with respect to its Crypto-Asset Users that are Reportable Users or that have
Controlling Persons that are Reportable Persons:
1. the name, address, jurisdiction(s) of residence, TIN(s) and date and place of birth (in the case
of an individual) of each Reportable User and, in the case of any Entity that, after application
of the due diligence procedures, is identified as having one or more Controlling Persons that is
a Reportable Person, the name, address, jurisdiction(s) of residence and TIN(s) of the Entity
and the name, address, jurisdiction(s) of residence, TIN(s) and date and place of birth of each
Reportable Person, as well as the role(s) by virtue of which each Reportable Person is a
Controlling Person of the Entity;
2. the name, address and identifying number (if any) of the Reporting Crypto-Asset Service
Provider;
3. for each type of Relevant Crypto-Asset with respect to which it has effectuated Relevant
Transactions during the relevant calendar year or other appropriate reporting period:
a) the full name of the type of Relevant Crypto-Asset;
b) the aggregate gross amount paid, the aggregate number of units and the number of
Relevant Transactions in respect of acquisitions against Fiat Currency;
c) the aggregate gross amount received, the aggregate number of units and the number of
Relevant Transactions in respect of disposals against Fiat Currency;
d) the aggregate fair market value, the aggregate number of units and the number of Relevant
Transactions in respect of acquisitions against other Relevant Crypto-Assets;
e) the aggregate fair market value, the aggregate number of units and the number of Relevant
Transactions in respect of disposals against other Relevant Crypto-Assets;
f)

the aggregate fair market value, the aggregate number of units and the number of
Reportable Retail Payment Transactions;

g) the aggregate fair market value, the aggregate number of units and the number of Relevant
Transactions, and subdivided by Transfer type where known by the Reporting CryptoAsset Service Provider, in respect of Transfers to the Reportable User not covered by
subparagraphs A(3)(b) and (d);
h) the aggregate fair market value, the aggregate number of units and the number of Relevant
Transactions, and subdivided by Transfer type where known by the Reporting CryptoAsset Service Provider, in respect of Transfers by the Reportable User not covered by
subparagraphs A(3)(c), (e) and (f); and

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i)

the aggregate fair market value, as well as the aggregate number of units in respect of
Transfers by the Reportable Crypto-Asset User effectuated by the Reporting Crypto-Asset
Service Provider to wallet addresses not known by the Reporting Crypto-Asset Service
Provider to be associated with a virtual asset service provider or financial institution.

B. Notwithstanding subparagraph A(1), the TIN is not required to be reported if (i) a TIN is not issued
by the relevant Reportable Jurisdiction or (ii) the domestic law of the relevant Reportable
Jurisdiction does not require the collection of the TIN issued by such Reportable Jurisdiction.
C. Notwithstanding subparagraph A(1), the place of birth is not required to be reported unless the
Reporting Crypto-Asset Service Provider is otherwise required to obtain and report it under
domestic law.
D. For the purposes of subparagraphs A(3)(b) and (c), the amount paid or received must be reported
in the Fiat Currency in which it was paid or received. In case the amounts were paid or received
in multiple Fiat Currencies, the amounts must be reported in a single Fiat Currency, converted at
the time of each Relevant Transaction in a manner that is consistently applied by the Reporting
Crypto-Asset Service Provider.
E. For the purposes of subparagraphs A(3)(d) through (i), the fair market value must be determined
and reported in a single Fiat Currency, valued at the time of each Relevant Transaction in a manner
that is consistently applied by the Reporting Crypto-Asset Service Provider.
F. The information reported must identify the Fiat Currency in which each amount is reported.
G. The information pursuant to paragraph A must be reported by xx/xx of the calendar year following
the year to which the information relates.

Section III: Due diligence procedures
A Crypto-Asset User is treated as a Reportable User beginning as of the date it is identified as such
pursuant to the due diligence procedures described in this Section.

A. Due diligence procedures for Individual Crypto-Asset Users
The following procedures apply for purposes of determining whether the Individual Crypto-Asset User is a
Reportable User.
1. When establishing the relationship with the Individual Crypto-Asset User, or with respect to Preexisting
Individual Crypto-Asset Users by 12 months after the effective date of these rules, the Reporting CryptoAsset Service Provider must obtain a self-certification that allows the Reporting Crypto-Asset Service
Provider to determine the Individual Crypto-Asset User’s residence(s) for tax purposes and confirm the
reasonableness of such self-certification based on the information obtained by the Reporting CryptoAsset Service Provider, including any documentation collected pursuant to AML/KYC Procedures.
2. If at any point there is a change of circumstances with respect to an Individual Crypto-Asset User that
causes the Reporting Crypto-Asset Service Provider to know, or have reason to know, that the original
self-certification is incorrect or unreliable, the Reporting Crypto-Asset Service Provider cannot rely on
the original self-certification and must obtain a valid self-certification, or a reasonable explanation and,
where appropriate, documentation supporting the validity of the original self-certification.

B. Due diligence procedures for Entity Crypto-Asset Users
The following procedures apply for purposes of determining whether the Entity Crypto-Asset User is a
Reportable User or an Entity, other than an Excluded Person or an Active Entity, with one or more
Controlling Persons who are Reportable Persons.
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1. Determine Whether the Entity Crypto-Asset User is a Reportable User.
a) When establishing the relationship with the Entity Crypto-Asset User, or with respect to Preexisting
Entity Crypto-Assets Users by 12 months after the effective date of these rules, the Reporting
Crypto-Asset Service Provider must obtain a self-certification that allows the Reporting Crypto-Asset
Service Provider to determine the Entity Crypto-Asset User’s residence(s) for tax purposes and
confirm the reasonableness of such self-certification based on the information obtained by the
Reporting Crypto-Asset Service Provider, including any documentation collected pursuant to
AML/KYC Procedures. If the Entity Crypto-Asset User certifies that it has no residence for tax
purposes, the Reporting Crypto-Asset Service Provider may rely on the place of effective
management or on the address of the principal office to determine the residence of the Entity CryptoAsset User.
b) If the self-certification indicates that the Entity Crypto-Asset User is resident in a Reportable
Jurisdiction, the Reporting Crypto-Asset Service Provider must treat the Entity Crypto-Asset User
as a Reportable User, unless it reasonably determines based on the self-certification or on
information in its possession or that is publicly available, that the Entity Crypto-Asset User is an
Excluded Person.
2. Determine Whether the Entity has one or more Controlling Persons who are Reportable Persons.
With respect to an Entity Crypto-Asset User, other than an Excluded Person, the Reporting CryptoAsset Service Provider must determine whether it has one or more Controlling Persons who are
Reportable Persons, unless it determines that the Entity Crypto-Asset User is an Active Entity, based
on a self-certification from the Entity Crypto-Asset User.
a) Determining the Controlling Persons of the Entity Crypto-Asset User. For the purposes of
determining the Controlling Persons of the Entity Crypto-Asset User, a Reporting Crypto-Asset
Service Provider may rely on information collected and maintained pursuant to AML/KYC
Procedures, provided that such procedures are consistent with the 2012 FATF Recommendations
(as updated in June 2019 pertaining to virtual asset service providers). If the Reporting Crypto-Asset
Service Provider is not legally required to apply AML/KYC Procedures that are consistent with the
2012 FATF Recommendations (as updated in June 2019 pertaining to virtual asset service
providers), it must apply substantially similar procedures for the purposes of determining the
Controlling Persons.
b) Determining whether a Controlling Person of an Entity Crypto-Asset User is a Reportable
Person. For the purposes of determining whether a Controlling Person is a Reportable Person, a
Reporting Crypto-Asset Service Provider must rely on a self-certification from the Entity CryptoAsset User or such Controlling Person that allows the Reporting Crypto-Asset Service Provider to
determine the Controlling Person’s residence(s) for tax purposes and confirm the reasonableness
of such self-certification based on the information obtained by the Reporting Crypto-Asset Service
Provider, including any documentation collected pursuant to AML/KYC Procedures.
3. If at any point there is a change of circumstances with respect to an Entity Crypto-Asset User or its
Controlling Persons that causes the Reporting Crypto-Asset Service Provider to know, or have reason
to know, that the original self-certification is incorrect or unreliable, the Reporting Crypto-Asset Service
Provider cannot rely on the original self-certification and must obtain a valid self-certification, or a
reasonable explanation and, where appropriate, documentation supporting the validity of the original
self-certification.

C. Requirements for validity of self-certifications
1. A self-certification provided by an Individual Crypto-Asset User or Controlling Person is valid only if it is
signed or otherwise positively affirmed by the Individual Crypto-Asset User or Controlling Person, it is

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dated at the latest at the date of receipt and it contains the following information with respect to the
Individual Crypto-Asset User or Controlling Person:
a) first and last name;
b) residence address;
c) jurisdiction(s) of residence for tax purposes;
d) with respect to each Reportable Person, the TIN with respect to each Reportable Jurisdiction;
and
e) date of birth.
2. A self-certification provided by an Entity Crypto-Asset User is valid only if it is signed or otherwise
positively affirmed by the Crypto-Asset User, it is dated at the latest at the date of receipt and it contains
the following information with respect to the Entity Crypto-Asset User:
a) legal name;
b) address;
c) jurisdiction(s) of residence for tax purposes;
d) with respect to each Reportable Person, the TIN with respect to each Reportable Jurisdiction;
e) in case of an Entity Crypto-Asset User other than an Active Entity or an Excluded Person, the
information described in subparagraph C(1) with respect to each Controlling Person of the
Entity Crypto-Asset User, unless such Controlling Person has provided a self-certification
pursuant to subparagraph C(1), as well as the role(s) by virtue of which each Reportable
Person is a Controlling Person of the Entity, if not already determined on the basis of AML/KYC
Procedures; and
f)

if applicable, information as to the criteria it meets to be treated as an Active Entity or Excluded
Person.

3. Notwithstanding subparagraphs C(1) and (2), the TIN is not required to be collected if the jurisdiction
of residence of the Reportable Person does not issue a TIN to the Reportable Person, or the domestic
law of the relevant Reportable Jurisdiction does not require the collection of the TIN issued by such
Reportable Jurisdiction.

D. General due diligence requirements
1. A Reporting Crypto-Asset Service Provider that is also a Financial Institution for the purposes of the
Common Reporting Standard may rely on the due diligence procedures completed pursuant to
Sections IV and VI of the Common Reporting Standard for the purpose of the due diligence procedures
pursuant to this Section. A Reporting Crypto-Asset Service Provider may also rely on a self-certification
already collected for other tax purposes, provided such self-certification meets the requirements of
paragraph C of this Section.
2. A Reporting Crypto-Asset Service Provider may rely on a third party to fulfil the due diligence
obligations set out in this Section III, but such obligations remain the responsibility of the Reporting
Crypto-Asset Service Provider.
3. A Reporting Crypto-Asset Service Provider is required to maintain all documentation and data for a
period of not less than five years after the end of the period within which the Reporting Crypto-Asset
Service Provider must report the information required to be reported pursuant to Section II.

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Section IV: Defined terms
A. Relevant Crypto-Asset
1. The term “Crypto-Asset” means a digital representation of value that relies on a cryptographically
secured distributed ledger or a similar technology to validate and secure transactions.
2. The term “Relevant Crypto-Asset” means any Crypto-Asset that is not a Central Bank Digital
Currency, a Specified Electronic Money Product or any Crypto-Asset for which the Reporting CryptoAsset Service Provider has adequately determined that it cannot be used for payment or investment
purposes.
3. The term “Central Bank Digital Currency” means any digital Fiat Currency issued by a Central Bank.
4. The term “Specified Electronic Money Product” means any Crypto-Asset that is:
a) a digital representation of a single Fiat Currency;
b) issued on receipt of funds for the purpose of making payment transactions;
c) represented by a claim on the issuer denominated in the same Fiat Currency;
d) accepted in payment by a natural or legal person other than the issuer; and
e) by virtue of regulatory requirements to which the issuer is subject, redeemable at any time and
at par value for the same Fiat Currency upon request of the holder of the product.
The term “Specified Electronic Money Product” does not include a product created for the sole
purpose of facilitating the transfer of funds from a customer to another person pursuant to
instructions of the customer. A product is not created for the sole purpose of facilitating the
transfer of funds if, in the ordinary course of business of the transferring Entity, either the funds
connected with such product are held longer than 60 days after receipt of instructions to
facilitate the transfer, or, if no instructions are received, the funds connected with such product
are held longer than 60 days after receipt of the funds.

B. Reporting Crypto-Asset Service Provider
1. The term “Reporting Crypto-Asset Service Provider” means any individual or Entity that, as a
business, provides a service effectuating Exchange Transactions for or on behalf of customers,
including by acting as a counterparty, or as an intermediary, to such Exchange Transactions, or by
making available a trading platform.

C. Relevant Transaction
1. The term “Relevant Transaction” means any:
a) Exchange Transaction; and
b) Transfer of Relevant Crypto-Assets.
2. The term “Exchange Transaction” means any:
a) exchange between Relevant Crypto-Assets and Fiat Currencies; and
b) exchange between one or more forms of Relevant Crypto-Assets.
3. The term “Reportable Retail Payment Transaction” means a Transfer of Relevant Crypto-Assets in
consideration of goods or services for a value exceeding USD 50,000.
4. The term “Transfer” means a transaction that moves a Relevant Crypto-Asset from or to the CryptoAsset address or account of one Crypto-Asset User, other than one maintained by the Reporting
Crypto-Asset Service Provider on behalf of the same Crypto-Asset User, where, based on the

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knowledge available to the Reporting Crypto-Asset Service Provider at the time of transaction, the
Reporting Crypto-Asset Service Provider cannot determine that the transaction is an Exchange
Transaction.
5. The term “Fiat Currency” means the official currency of a jurisdiction, issued by a jurisdiction or by a
jurisdiction’s designated Central Bank or monetary authority, as represented by physical banknotes or
coins or by money in different digital forms, including bank reserves and Central Bank Digital
Currencies. The term also includes commercial bank money and electronic money products (including
Specified Electronic Money Products).

D. Reportable User
1. The term “Reportable User” means a Crypto-Asset User that is a Reportable Person.
2. The term “Crypto-Asset User” means an individual or Entity that is a customer of a Reporting CryptoAsset Service Provider for purposes of carrying out Relevant Transactions. An individual or Entity, other
than a Financial Institution or a Reporting Crypto-Asset Service Provider, acting as a Crypto-Asset User
for the benefit or account of another individual or Entity as agent, custodian, nominee, signatory,
investment advisor, or intermediary, is not treated as a Crypto-Asset User, and such other individual or
Entity is treated as the Crypto-Asset User. Where a Reporting Crypto-Asset Service Provider provides
a service effectuating Reportable Retail Payment Transactions for or on behalf of a merchant, the
Reporting Crypto-Asset Service Provider must also treat the customer that is the counterparty to the
merchant for such Reportable Retail Payment Transaction as the Crypto-Asset User with respect to
such Reportable Retail Payment Transaction, provided that the Reporting Crypto-Asset Service
Provider is required to verify the identity of such customer by virtue of the Reportable Retail Payment
Transaction pursuant to domestic anti-money laundering rules.
3. The term “Individual Crypto-Asset User” means a Crypto-Asset User that is an individual.
4. The term “Preexisting Individual Crypto-Asset User” means an Individual Crypto-Asset User that
has established a relationship with the Reporting Crypto-Asset Service Provider as of [xx/xx/xxxx].
5. The term “Entity Crypto-Asset User” means a Crypto-Asset User that is an Entity.
6. The term “Preexisting Entity Crypto-Asset User” means an Entity Crypto-Asset User that has
established a relationship with the Reporting Crypto-Asset Service Provider as of [xx/xx/xxxx].
7. The term “Reportable Person” means a Reportable Jurisdiction Person other than an Excluded
Person.
8. The term “Reportable Jurisdiction Person” means an Entity or individual that is resident in a
Reportable Jurisdiction under the tax laws of such jurisdiction, or an estate of a decedent that was a
resident of a Reportable Jurisdiction. For this purpose, an Entity such as a partnership, limited liability
partnership or similar legal arrangement that has no residence for tax purposes shall be treated as
resident in the jurisdiction in which its place of effective management is situated.
9. The term “Reportable Jurisdiction” means any jurisdiction (a) with which an agreement or
arrangement is in effect pursuant to which [Jurisdiction] is obligated to provide the information specified
in Section II with respect to Reportable Persons resident in such jurisdiction, and (b) which is identified
as such in a list published by [Jurisdiction].
10. The term “Controlling Persons” means the natural persons who exercise control over an Entity. In
the case of a trust, such term means the settlor(s), the trustee(s), the protector(s) (if any), the
beneficiary(ies) or class(es) of beneficiaries, and any other natural person(s) exercising ultimate
effective control over the trust, and in the case of a legal arrangement other than a trust, such term
means persons in equivalent or similar positions. The term “Controlling Persons” must be interpreted
in a manner consistent with the 2012 Financial Action Task Force Recommendations, as updated in
June 2019 pertaining to virtual asset service providers.

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11. The term “Active Entity” means any Entity that meets any of the following criteria:
a) less than 50% of the Entity’s gross income for the preceding calendar year or other appropriate
reporting period is passive income and less than 50% of the assets held by the Entity during the
preceding calendar year or other appropriate reporting period are assets that produce or are held
for the production of passive income;
b) substantially all of the activities of the Entity consist of holding (in whole or in part) the outstanding
stock of, or providing financing and services to, one or more subsidiaries that engage in trades
or businesses other than the business of a Financial Institution, except that an Entity does not
qualify for this status if the Entity functions (or holds itself out) as an investment fund, such as a
private equity fund, venture capital fund, leveraged buyout fund, or any investment vehicle whose
purpose is to acquire or fund companies and then hold interests in those companies as capital
assets for investment purposes;
c) the Entity is not yet operating a business and has no prior operating history, but is investing
capital into assets with the intent to operate a business other than that of a Financial Institution,
provided that the Entity does not qualify for this exception after the date that is 24 months after
the date of the initial organisation of the Entity;
d) the Entity was not a Financial Institution in the past five years, and is in the process of liquidating
its assets or is reorganising with the intent to continue or recommence operations in a business
other than that of a Financial Institution;
e) the Entity primarily engages in financing and hedging transactions with, or for, Related Entities
that are not Financial Institutions, and does not provide financing or hedging services to any
Entity that is not a Related Entity, provided that the group of any such Related Entities is primarily
engaged in a business other than that of a Financial Institution; or
f) the Entity meets all of the following requirements:
i. it is established and operated in its jurisdiction of residence exclusively for religious,
charitable, scientific, artistic, cultural, athletic, or educational purposes; or it is established
and operated in its jurisdiction of residence and it is a professional organisation, business
league, chamber of commerce, labour organisation, agricultural or horticultural organisation,
civic league or an organisation operated exclusively for the promotion of social welfare;
ii. it is exempt from income tax in its jurisdiction of residence;
iii. it has no shareholders or members who have a proprietary or beneficial interest in its income
or assets;
iv. the applicable laws of the Entity’s jurisdiction of residence or the Entity’s formation
documents do not permit any income or assets of the Entity to be distributed to, or applied
for the benefit of, a private person or non-charitable Entity other than pursuant to the conduct
of the Entity’s charitable activities, or as payment of reasonable compensation for services
rendered, or as payment representing the fair market value of property which the Entity has
purchased; and
v. the applicable laws of the Entity’s jurisdiction of residence or the Entity’s formation
documents require that, upon the Entity’s liquidation or dissolution, all of its assets be
distributed to a Governmental Entity or other non-profit organisation, or escheat to the
government of the Entity’s jurisdiction of residence or any political subdivision thereof.

E. Excluded Person
1. The term “Excluded Person” means (a) an Entity the stock of which is regularly traded on one or
more established securities markets; (b) any Entity that is a Related Entity of an Entity described in

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clause (a); (c) a Governmental Entity; (d) an International Organisation; (e) a Central Bank; or (f) a
Financial Institution other than an Investment Entity described in Section IV E(5)(b).
2. The term “Financial Institution” means a Custodial Institution, a Depository Institution, an Investment
Entity, or a Specified Insurance Company.
3. The term “Custodial Institution” means any Entity that holds, as a substantial portion of its business,
Financial Assets for the account of others. An Entity holds Financial Assets for the account of others
as a substantial portion of its business if the Entity’s gross income attributable to the holding of Financial
Assets and related financial services equals or exceeds 20% of the Entity’s gross income during the
shorter of: (i) the three-year period that ends on 31 December (or the final day of a non-calendar year
accounting period) prior to the year in which the determination is being made; or (ii) the period during
which the Entity has been in existence.
4. The term “Depository Institution” means any Entity that:
a) accepts deposits in the ordinary course of a banking or similar business; or
b) holds Specified Electronic Money Products or Central Bank Digital Currencies for the benefit of
customers.
5. The term “Investment Entity” means any Entity:
a) that primarily conducts as a business one or more of the following activities or operations for or
on behalf of a customer:
i.

trading in money market instruments (cheques, bills, certificates of deposit, derivatives, etc.);
foreign exchange; exchange, interest rate and index instruments; transferable securities; or
commodity futures trading;

ii.

individual and collective portfolio management; or

iii.

otherwise investing, administering, or managing Financial Assets, money, or Relevant
Crypto-Assets on behalf of other persons; or

b) the gross income of which is primarily attributable to investing, reinvesting, or trading in Financial
Assets or Relevant Crypto-Assets, if the Entity is managed by another Entity that is a Depository
Institution, a Custodial Institution, a Specified Insurance Company, or an Investment Entity
described in subparagraph E(5)(a).
An Entity is treated as primarily conducting as a business one or more of the activities described in
subparagraph E(5)(a), or an Entity’s gross income is primarily attributable to investing, reinvesting, or
trading in Financial Assets or Relevant Crypto-Assets for purposes of subparagraph E(5)(b), if the
Entity’s gross income attributable to the relevant activities equals or exceeds 50 per cent of the Entity’s
gross income during the shorter of: (i) the three-year period ending on 31 December of the year
preceding the year in which the determination is made; or (ii) the period during which the Entity has
been in existence. For the purposes of subparagraph E(5)(a)(iii), the term “otherwise investing,
administering, or managing Financial Assets, money, or Relevant Crypto-Assets on behalf of other
persons” does not include the provision of services effectuating Exchange Transactions for or on behalf
of customers. The term “Investment Entity” does not include an Entity that is an Active Entity because
it meets any of the criteria in subparagraphs D(11)(b) through (e).
This paragraph shall be interpreted in a manner consistent with similar language set forth in the
definition of “financial institution” in the Financial Action Task Force Recommendations.
6. The term “Specified Insurance Company” means any Entity that is an insurance company (or the
holding company of an insurance company) that issues, or is obligated to make payments with respect
to, a Cash Value Insurance Contract or an Annuity Contract.
7. The term “Governmental Entity” means the government of a jurisdiction, any political subdivision of
a jurisdiction (which, for the avoidance of doubt, includes a state, province, county, or municipality), or
any wholly owned agency or instrumentality of a jurisdiction or of any one or more of the foregoing.

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This category is comprised of the integral parts, controlled entities, and political subdivisions of a
jurisdiction.
a) An “integral part” of a jurisdiction means any person, organisation, agency, bureau, fund,
instrumentality, or other body, however designated, that constitutes a governing authority of a
jurisdiction. The net earnings of the governing authority must be credited to its own account or to
other accounts of the jurisdiction, with no portion inuring to the benefit of any private person. An
integral part does not include any individual who is a sovereign, official, or administrator acting in
a private or personal capacity.
b) A controlled entity means an Entity that is separate in form from the jurisdiction or that otherwise
constitutes a separate juridical entity, provided that:
i.

the Entity is wholly owned and controlled by one or more Governmental Entities directly or
through one or more controlled entities;

ii.

the Entity’s net earnings are credited to its own account or to the accounts of one or more
Governmental Entities, with no portion of its income inuring to the benefit of any private
person; and

iii.

the Entity’s assets vest in one or more Governmental Entities upon dissolution.

c) Income does not inure to the benefit of private persons if such persons are the intended
beneficiaries of a governmental programme, and the programme activities are performed for the
general public with respect to the common welfare or relate to the administration of some phase
of government. Notwithstanding the foregoing, however, income is considered to inure to the
benefit of private persons if the income is derived from the use of a governmental entity to conduct
a commercial business, such as a commercial banking business, that provides financial services
to private persons.
8. The term “International Organisation” means any international organisation or wholly owned agency
or instrumentality thereof. This category includes any intergovernmental organisation (including a
supranational organisation) (a) that is comprised primarily of governments; (b) that has in effect a
headquarters or substantially similar agreement with the jurisdiction; and (c) the income of which does
not inure to the benefit of private persons.
9. The term “Central Bank” means an institution that is by law or government sanction the principal
authority, other than the government of the jurisdiction itself, issuing instruments intended to circulate
as currency. Such an institution may include an instrumentality that is separate from the government
of the jurisdiction, whether or not owned in whole or in part by the jurisdiction.
10. The term “Financial Asset” includes a security (for example, a share of stock in a corporation;
partnership or beneficial ownership interest in a widely held or publicly traded partnership or trust; note,
bond, debenture, or other evidence of indebtedness), partnership interest, commodity, swap (for
example, interest rate swaps, currency swaps, basis swaps, interest rate caps, interest rate floors,
commodity swaps, equity swaps, equity index swaps, and similar agreements), Insurance Contract or
Annuity Contract, or any interest (including a futures or forward contract or option) in a security,
Relevant Crypto-Asset, partnership interest, commodity, swap, Insurance Contract, or Annuity
Contract. The term “Financial Asset” does not include a non-debt, direct interest in real property.
11. The term “Equity Interest” means, in the case of a partnership that is a Financial Institution, either a
capital or profits interest in the partnership. In the case of a trust that is a Financial Institution, an Equity
Interest is considered to be held by any person treated as a settlor or beneficiary of all or a portion of
the trust, or any other natural person exercising ultimate effective control over the trust. A Reportable
Person will be treated as being a beneficiary of a trust if such Reportable Person has the right to receive
directly or indirectly (for example, through a nominee) a mandatory distribution or may receive, directly
or indirectly, a discretionary distribution from the trust.

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12. The term “Insurance Contract” means a contract (other than an Annuity Contract) under which the
issuer agrees to pay an amount upon the occurrence of a specified contingency involving mortality,
morbidity, accident, liability, or property risk.
13. The term “Annuity Contract” means a contract under which the issuer agrees to make payments for
a period of time determined in whole or in part by reference to the life expectancy of one or more
individuals. The term also includes a contract that is considered to be an Annuity Contract in
accordance with the law, regulation, or practice of the jurisdiction in which the contract was issued,
and under which the issuer agrees to make payments for a term of years.
14. The term “Cash Value Insurance Contract” means an Insurance Contract (other than an indemnity
reinsurance contract between two insurance companies) that has a Cash Value.
15. The term “Cash Value” means the greater of (i) the amount that the policyholder is entitled to receive
upon surrender or termination of the contract (determined without reduction for any surrender charge
or policy loan), and (ii) the amount the policyholder can borrow under or with regard to the contract.
Notwithstanding the foregoing, the term “Cash Value” does not include an amount payable under an
Insurance Contract:
a) solely by reason of the death of an individual insured under a life insurance contract;
b) as a personal injury or sickness benefit or other benefit providing indemnification of an economic
loss incurred upon the occurrence of the event insured against;
c) as a refund of a previously paid premium (less cost of insurance charges whether or not actually
imposed) under an Insurance Contract (other than an investment-linked life insurance or annuity
contract) due to cancellation or termination of the contract, decrease in risk exposure during the
effective period of the contract, or arising from the correction of a posting or similar error with
regard to the premium for the contract;
d) as a policyholder dividend (other than a termination dividend) provided that the dividend relates
to an Insurance Contract under which the only benefits payable are described in subparagraph
E(15)(b); or
e) as a return of an advance premium or premium deposit for an Insurance Contract for which the
premium is payable at least annually if the amount of the advance premium or premium deposit
does not exceed the next annual premium that will be payable under the contract.

F. Miscellaneous
1. The term “Partner Jurisdiction” means any jurisdiction that has put in place equivalent legal
requirements and that is included in a list published by [Jurisdiction].
2. The term “AML/KYC Procedures” means the customer due diligence procedures of a Reporting
Crypto-Asset Service Provider pursuant to the anti-money laundering or similar requirements to which
such Reporting Crypto-Asset Service Provider is subject.
3. The term “Entity” means a legal person or a legal arrangement, such as a corporation, partnership,
trust, or foundation.
4. An Entity is a “Related Entity” of another Entity if either Entity controls the other Entity, or the two
Entities are under common control. For this purpose control includes direct or indirect ownership of
more than 50% of the vote and value in an Entity.
5. The term “TIN” means Taxpayer Identification Number (or functional equivalent in the absence of a
Taxpayer Identification Number).
6. The term “Branch” means a unit, business or office of a Reporting Crypto-Asset Service Provider that
is treated as a branch under the regulatory regime of a jurisdiction or that is otherwise regulated under
the laws of a jurisdiction as separate from other offices, units, or branches of the Reporting Crypto-

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Asset Service Provider. All units, businesses, or offices of a Reporting Crypto-Asset Service Provider
in a single jurisdiction shall be treated as a single branch.

Section V: Effective implementation
A jurisdiction must have rules and administrative procedures in place to ensure effective implementation
of, and compliance with, the reporting and due diligence procedures set out above.

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Commentary
Commentary on Section I: Obligations of Reporting Crypto-Asset Service
Providers
1.
This Section sets out the criteria pursuant to which a Reporting Crypto-Asset Service Provider is
subject to the reporting and due diligence requirements in Sections II and III in [Jurisdiction].
2.
Paragraph A contains four distinct criteria that link a Reporting Crypto-Asset Service Provider to
[Jurisdiction]:

the Entity or individual is resident for tax purposes in [Jurisdiction];

the Entity is (a) incorporated or organised under the laws of [Jurisdiction], and (b) either has legal
personality in [Jurisdiction] or has an obligation to file tax returns or tax information returns to the
tax authorities in [Jurisdiction] with respect to the income of the Entity. As such, this criterion
captures situations where an Entity Reporting Crypto-Asset Service Provider selects the law of a
certain jurisdiction for purposes of establishing its organisation, including through the act of
incorporation. However, in addition to being incorporated or organised under the laws of
[Jurisdiction], the Entity must also either have legal personality in [Jurisdiction] or be subject to an
obligation to file tax returns or tax information returns to the tax authorities in [Jurisdiction] with
respect to its income. This condition is intended to ensure that [Jurisdiction]’s tax administration
will be able to enforce the reporting requirements. For the purposes of subparagraph A(2), a tax
information return is any filing used to notify the tax administration regarding part or all of the
income of the Entity, but which does not necessarily state a pursuant tax liability of the Entity.

the Entity is managed from [Jurisdiction]. This criterion includes situations where a trust (or a
functionally similar Entity) that is a Reporting Crypto-Asset Service Provider is managed by a
trustee (or functionally similar representative) that is tax resident in [Jurisdiction]. This criterion
captures the place of effective management, as well as any other place of management of the
Entity; or

the Entity or individual has a regular place of business in [Jurisdiction]. In this respect, any Branch
is to be considered a regular place of business. This criterion captures the principal, as well as
other regular places of business.

3.
Paragraph B provides that an Entity also has due diligence and reporting obligations in
[Jurisdiction] with respect to Relevant Transactions effectuated through a Branch based in [Jurisdiction].
4.
A Reporting Crypto-Asset Service Provider must report the information to each jurisdiction for
which it fulfils the criteria of paragraphs A and B, subject to the rules in paragraphs C through H to prevent
duplicative reporting. For that purpose, paragraphs C through F introduce a hierarchy among the four
criteria in paragraph A that link a Reporting Crypto-Asset Service Provider to [Jurisdiction]. This hierarchy
ensures that the due diligence and reporting requirements in [Jurisdiction] do not apply in instances where
there is a stronger link with another jurisdiction.

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5.
As such, paragraph C foresees that an Entity that is a Reporting Crypto-Asset Service Provider
which is linked to [Jurisdiction] on the basis of the criteria set out in subparagraphs A(2), (3) or (4) (i.e. it is
incorporated, or organised under the laws of [Jurisdiction] and has either legal personality or has an
obligation to file tax returns or tax information returns to the tax authorities in [Jurisdiction] with respect to
the income of the Entity, or is managed from [Jurisdiction], or it has a regular place of business in
[Jurisdiction]), is not required to complete the reporting and due diligence requirements in Sections II and
III in [Jurisdiction] if it is tax resident in a Partner Jurisdiction and completes the due diligence and reporting
requirements in such Partner Jurisdiction.
6.
In addition, paragraph D foresees that an Entity that is a Reporting Crypto-Asset Service Provider
is not required to complete the reporting and due diligence requirements in Sections II and III in
[Jurisdiction] it is subject to pursuant to subparagraphs A(3) or (4) (i.e. it is managed from [Jurisdiction],
or has a regular place of business in [Jurisdiction]), to the extent it has legal personality or has an obligation
to file tax returns or tax information returns to the tax authorities in [Jurisdiction] with respect to the income
of the Entity and is incorporated, or organised under the laws of such Partner Jurisdiction and completes
the due diligence and reporting requirements in such Partner Jurisdiction.
7.
Paragraph E foresees that an Entity that is a Reporting Crypto-Asset Service Provider is not
required to complete the reporting and due diligence requirements in Sections II and III in [Jurisdiction] it
is subject to pursuant to subparagraph A(4) (i.e. its regular place of business is in [Jurisdiction]), to the
extent such reporting and due diligence requirements are completed by such Reporting Crypto-Asset
Service Provider in a Partner Jurisdiction, by virtue of it being managed from such Partner Jurisdiction.
8.
Paragraph F foresees that an individual that is a Reporting Crypto-Asset Service Provider is not
required to complete the reporting and due diligence requirements in Sections II and III in [Jurisdiction] it
is subject to pursuant to subparagraph A(4) (i.e. its regular place of business is in [Jurisdiction]), to the
extent such reporting and due diligence requirements are completed in a Partner Jurisdiction, where the
individual Reporting Crypto-Asset Service Provider is resident for tax purposes.
9.
Paragraph G foresees that a Reporting Crypto-Asset Service Provider is not subject to the
reporting and due diligence requirements in Sections II and III in [Jurisdiction], to the extent these are
completed in a Partner Jurisdiction, by virtue of effectuating Relevant Transactions for Crypto-Asset Users
through a Branch in such Partner Jurisdiction. A Reporting Crypto-Asset Service Provider that maintains
one or more Branches fulfils the due diligence and reporting requirements with respect to a Crypto-Asset
User, if any one of its Branches in [Jurisdiction] or a Partner Jurisdiction fulfils such requirements.
10.
Finally, paragraph H foresees that a Reporting Crypto-Asset Service Provider is not required to
complete the reporting and due diligence requirements in Section II and III in [Jurisdiction] it is subject to
pursuant to subparagraphs A(1), (2), (3) or (4), to the extent it has a lodged a notification with [Jurisdiction]
in a format specified by [Jurisdiction] confirming that such reporting and due diligence requirements are
completed by such Reporting Crypto-Asset Service Provider under the rules of a Partner Jurisdiction
pursuant to a substantially similar nexus that it is subject to in [Jurisdiction].
11.
Paragraph H only applies to instances where a Reporting Crypto-Asset Service Provider is subject
to the same nexus in two or more jurisdictions. For example, a Reporting Crypto-Asset Service Provider
that is tax resident in two or more jurisdictions, may rely on paragraph H to select one of the two jurisdictions
of tax residence where it complies with the due diligence and reporting requirements. Similarly, a Reporting
Crypto-Asset Service Provider that has a regular place of business in two or more jurisdictions may rely
on paragraph H to select one of these jurisdictions where it complies with the due diligence and reporting
requirements; however, such reliance is not permitted if the Reporting Crypto-Asset Service Provider has
nexus in a jurisdiction pursuant to subparagraphs A(1), (2), or (3).

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Commentary on Section II: Reporting requirements
1.
Section II describes the general reporting requirements applicable to Reporting Crypto-Asset
Service Providers. Paragraph A specifies the information to be reported with respect to Crypto-Asset Users
and Controlling Persons as a general rule, and subject to the due diligence procedures in Section III, while
paragraphs B and C provide for exceptions in connection with TIN and place of birth. Paragraphs D and E
contain the valuation and currency translation rules. Paragraph F specifies the requirement to identify the
Fiat Currency in which the amount of a Relevant Transaction is reported. Paragraph G specifies the timing
of the reporting by the Reporting Crypto-Asset Service Provider.

Paragraph II (A) – Information to be reported
Subparagraph A(1) – Information on Reportable Persons
Jurisdiction(s) of residence
2.
The jurisdiction(s) of residence to be reported with respect to a Reportable Person is (are) the
jurisdiction(s) of residence identified by the Reporting Crypto-Asset Service Provider pursuant to the due
diligence procedures in Section III. In the case of a Reportable Person that is identified as having more
than one jurisdiction of residence, the jurisdictions of residence to be reported are all the jurisdictions of
residence identified by the Reporting Crypto-Asset Service Provider for the Reportable Person.
TIN
3.
The TIN to be reported is the TIN assigned to the Reportable Person by its jurisdiction of residence
(i.e. not by a jurisdiction of source). In the case of a Reportable Person that is identified as having more
than one jurisdiction of residence, the TIN to be reported is the Reportable Person’s TIN with respect to
each Reportable Jurisdiction. In this respect, the term “TIN” includes a functional equivalent in the absence
of a Taxpayer Identification Number.

Subparagraph A(2) – Information on the Reporting Crypto-Asset Service Provider
4.
Subparagraph A(2) requires that the Reporting Crypto-Asset Service Provider must report its
name, address and identifying number (if any). Identifying information on the Reporting Crypto-Asset
Service Provider is intended to allow the identification of the source of the information reported and
subsequently exchanged in order to allow the providing jurisdiction to, e.g. follow-up on an error that may
have led to incorrect or incomplete information reporting. The “identifying number” of a Reporting CryptoAsset Service Provider is one of the following types of numbers assigned to a Reporting Crypto-Asset
Service Provider for identification purposes: a TIN, or in the absence thereof, a business/company
registration code/number, or a Global Legal Entity Identifier (“LEI”). If no identifying number is assigned to
the Reporting Crypto-Asset Service Provider, then only the name and address of the Reporting CryptoAsset Service Provider are required to be reported.

Subparagraph A(3) – Information on Relevant Transactions
5.
Subparagraph A(3) contains the financial reporting requirements applicable to Reporting CryptoAsset Service Providers, whereby Reporting Crypto-Asset Service Providers must report certain
information items with respect to Relevant Transactions effectuated for each relevant calendar year or
other appropriate reporting period and in relation to each Reportable User. In this respect, subparagraph

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A(3) specifies the information to be reported, while paragraphs D and E contain the applicable valuation
and currency translation rules.
6.
Reflecting the different categories of Relevant Transactions, Reporting Crypto-Asset Service
Providers must, for each type of Relevant Crypto-Asset, report on:

the full name of the type of Relevant Crypto-Asset under subparagraph A(3)(a);

acquisitions and disposals of Relevant Crypto-Assets against Fiat Currency under subparagraphs
A(3)(b) and A(3)(c), respectively;

acquisitions and disposals of Relevant Crypto-Assets against other Relevant Crypto-Assets, under
subparagraphs A(3)(d) and A(3)(e), respectively;

Reportable Retail Payment Transactions, under subparagraph A(3)(f); and

other Transfers of Relevant Crypto-Assets to and by the Reportable User, under subparagraphs
A(3)(g), A(3)(h) and A(3)(i) respectively.

7.
Transfers to and by Reportable Users, reported upon under subparagraphs A(3)(g), A(3)(h) and
A(3)(i), include acquisitions and disposals in respect of which the Reporting Crypto-Asset Service Provider
has no actual knowledge of the consideration paid or received, as well as Transfers that are not
acquisitions or disposals (e.g. a Transfer of Crypto-Assets by a user to its private wallet or to its account
with another Reporting Crypto-Asset Service Provider).
8.
The applicable valuation rules vary between the reporting categories. In the case of Crypto-Assetto-Fiat Currency transactions under subparagraphs A(3)(b) and A(3)(c), Reporting Crypto-Asset Service
Providers must report the amount paid or received by the Reportable User net of transaction fees.
Paragraph D provides that such amounts must be reported in the Fiat Currency in which they were paid or
received. However, in case amounts were paid or received in multiple Fiat Currencies, they must be
reported in a single currency, converted at the time of each Relevant Transaction in a manner that is
consistently applied by the Reporting Crypto-Asset Service Provider.
9.
For Crypto-Asset-to-Crypto-Asset transactions under subparagraphs A(3)(d) and A(3)(e),
Reportable Retail Payment Transactions under subparagraph A(3)(f), other Transfers under
subparagraphs A(3)(g) and A(3)(h), as well as reporting on Transfers to wallets not known by the Reporting
Crypto-Asset Service Provider to be associated with virtual asset service providers or financial institutions
(as such terms are defined in the Financial Action Task Force Recommendations updated in June 2019
pertaining to virtual asset service providers) under A(3)(i), in light of the absence of (known) consideration,
Reporting Crypto-Asset Service Providers must report the fair market value of the Relevant Crypto-Assets
acquired and disposed or transferred, net of transaction fees. Paragraph E provides that such amounts
must be determined and reported in a Fiat Currency, valued at the time of each Relevant Transaction in a
manner that is consistently applied by the Reporting Crypto-Asset Service Provider. For the purposes of
paragraphs D and E, a jurisdiction may require reporting in a particular Fiat Currency, for example its local
currency.
10.
For all reporting categories under subparagraphs A(3)(b) through A(3)(i), the rules require the
aggregation, i.e. summing up, of all transactions attributable to each reporting category for each type of
Relevant Crypto-Asset, as converted and valued pursuant to paragraphs D and E. For example, if units of
a Relevant Crypto-Asset can be mutually substituted for corresponding units of the same Relevant CryptoAsset, then they should all be treated as the same type of Relevant Crypto-Asset for aggregation purposes.
If, however, a Relevant Crypto-Asset is non-fungible, and different variations of the Relevant Crypto-Asset
do not have the same value among fixed units, each unit should be treated as a separate type of Relevant
Crypto-Asset.

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Type of Relevant Crypto-Asset
11.
The information under subparagraphs A(3)(b) through A(3)(i) must be reported by type of Relevant
Crypto-Asset. For these purposes, the full name of the type of Relevant Crypto-Asset is required to be
reported under subparagraph A(3)(a), rather than a Relevant Crypto-Asset’s “ticker” or abbreviated symbol
that a Reporting Crypto-Asset Service Provider uses to identify a specific type of Relevant Crypto-Asset.
Crypto-Asset-to-Fiat Currency transactions
12.
Subparagraph A(3)(b) requires that, in the case of acquisitions of Relevant Crypto-Assets against
Fiat Currency, Reporting Crypto-Asset Service Providers must report the aggregate amount paid net of
transaction fees by the Reportable User for each type of Relevant Crypto-Assets acquired by the
Reportable User.
13.
An acquisition is any transaction effectuated by the Reporting Crypto-Asset Service Provider
where the Reportable User obtains a Relevant Crypto-Asset, irrespective of whether such asset is obtained
from a third-party seller, or from the Reporting Crypto-Asset Service Provider itself.
14.
In the case of disposals of Relevant Crypto-Assets against Fiat Currency, subparagraph A(3)(c)
requires that the Reporting Crypto-Asset Service Provider must report the aggregate amount received in
Fiat Currency net of transaction fees for any Relevant Crypto-Assets alienated by the Reportable User.
15.
A disposal is any transaction effectuated by the Reporting Crypto-Asset Service Provider where
the Reportable User alienates a Relevant Crypto-Asset, irrespective of whether such asset is delivered to
a third-party purchaser, or to the Reporting Crypto-Asset Service Provider itself.
16.
There may be instances where a Reportable User acquires or disposes of a Relevant CryptoAsset against Fiat Currency, although the Reporting Crypto-Asset Service Provider does not have actual
knowledge of the underlying Fiat Currency consideration. This would, for example, be the case if the
Reporting Crypto-Asset Service Provider only conducted the Transfer of the Relevant Crypto-Assets to
and from the Reportable User, without actual knowledge of the Fiat Currency leg of the transaction. Such
transactions should be reported upon as Transfers sent to or by a Reportable User under subparagraphs
A(3)(g) and A(3)(h), respectively.
Crypto-Asset-to-Crypto-Asset transactions
17.
A Crypto-Asset-to-Crypto-Asset transaction that is effectuated by a Reporting Crypto-Asset
Service Provider will give rise to reporting under both subparagraphs A(3)(d) and A(3)(e). In this respect,
subparagraph A(3)(d) provides that in the case of acquisitions against other Relevant Crypto-Assets, the
Reporting Crypto-Asset Service Provider must report the fair market value of the Relevant Crypto-Assets
acquired net of transaction fees. Similarly, subparagraph A(3)(e) requires that in the case of disposals
against other Relevant Crypto-Assets, the Reporting Crypto-Asset Service Provider must report the fair
market value of the Relevant Crypto-Assets disposed net of transaction fees.
18.
By way of an example, in respect of an exchange of Relevant Crypto-Asset A for Relevant CryptoAsset B, the Reporting Crypto-Asset Service Provider must report both the fair market value of Relevant
Crypto-Asset A, i.e. the Relevant Crypto-Asset disposed, under subparagraph A(3)(e) and the fair market
value of Relevant Crypto-Asset B, i.e. the Relevant Crypto-Asset acquired, under subparagraph A(3)(d),
valued at the time of the Relevant Transaction and both net of transaction fees.
19.
All Crypto-Asset-to-Crypto-Asset transactions conducted by the same Reporting Crypto-Asset
Service Provider are subject to reporting under both subparagraphs A(3)(d) and A(3)(e). As for CryptoAsset-to-Fiat Currency transactions, there may be instances where a Reportable User effectuates a
Crypto-Asset-to-Crypto-Asset transaction, although the Reporting Crypto-Asset Service Provider does not
have actual knowledge of the Relevant Crypto-Asset acquired or disposed. This would, for example, be
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the case when the Reporting Crypto-Asset Service Provider only effectuates the Transfer of either the
Relevant Crypto-Assets disposed or acquired, without actual knowledge of the other leg of the transaction.
Depending on which leg of the transaction the Reporting Crypto-Asset Service Provider has actual
knowledge of, such transactions should be reported upon as Transfers sent to or by a Reportable User
under subparagraphs A(3)(g) and A(3)(h), respectively.
20.
Example: A Reportable User acquires Relevant Crypto-Asset D in exchange for Relevant CryptoAsset C. The Reporting Crypto-Asset Service Provider effectuates the Transfer of Relevant Crypto-Asset
C to the wallet of the seller of Relevant Crypto-Asset D. In exchange, the seller of Relevant Crypto-Asset
D transfers Relevant Crypto-Asset D directly to a cold wallet controlled by the Reportable User. Unless the
Reporting Crypto-Asset Service Provider has actual knowledge of the consideration, i.e. the Relevant
Crypto-Asset D Transfer, it should report the transaction as a Transfer by a Reportable User of Relevant
Crypto-Asset C under subparagraph A(3)(h).
Reportable Retail Payment Transactions
21.
Pursuant to subparagraph A(3)(f), aggregate information on Transfers that constitute Reportable
Retail Payment Transactions is required to be reported as a separate category of Relevant Transactions.
With respect to such Reportable Retail Payments Transactions, the customer of the merchant for, or on
behalf of, whom the Reporting Crypto-Asset Service Provider is providing a service effectuating Reportable
Retail Payment Transactions must be treated as the Crypto-Asset User (subject to the conditions specified
in the definition of Crypto-Asset User), and therefore as the Reportable User, in addition to the merchant.
Aggregate information with respect to Reportable Retail Payment Transactions by the customer of the
merchant must not be included in the aggregate information reported with respect to Transfers under
subparagraph A(3)(h). Aggregate information with respect to Transfers that do not constitute Reportable
Retail Payment Transactions solely by virtue of not meeting the de minimis threshold, should be included
in the aggregate information reported with respect to Transfers under A(3)(g) and (h). The following
examples illustrate the application of subparagraphs A(3)(f) and A(3)(g).
22.
Example 1: (Reportable Retail Payment Transaction): To facilitate the use of Crypto-Assets by
customers to purchase goods, a merchant has entered into an agreement with a Reporting Crypto-Asset
Service Provider to process payments to the merchant made in Crypto-Assets by the merchant’s
customers. The Reporting Crypto-Asset Service Provider does not maintain a separate relationship with
the merchant’s customers.
The customer makes a payment in Relevant Crypto-Assets for goods acquired from the merchant for a
value exceeding USD 50,000. This transaction is a Reportable Retail Payment Transaction. The Reporting
Crypto-Asset Service Provider should treat the customer of the merchant as the Crypto-Asset User, and
report the payment in Relevant Crypto-Assets as specified under subparagraph A(3)(f) (Reportable Retail
Payment Transactions), provided that the Reporting Crypto-Asset Service Provider is required to verify the
identity of such customer pursuant to domestic anti-money laundering rules, by virtue of the Reportable
Retail Payment Transaction. The Reporting Crypto-Asset Service Provider should also treat the merchant
as the Crypto-Asset User of this transaction, and the transaction is reportable as a Transfer to the merchant
under subparagraph A(3)(g).
23.
Example 2: (transaction that is not a Reportable Retail Payment Transaction by virtue of de
minimis threshold): The customer engages in another transaction with the merchant that is identical to the
transaction described in Example 1, except that the transaction amount is less than USD 50,000. The
transaction is not a Reportable Retail Payment Transaction. The Reporting Crypto-Asset Service Provider
should therefore treat the merchant as the Crypto-Asset User of this transaction, and the transaction is
reportable as a Transfer to the merchant under subparagraph A(3)(g).

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Transfers other than Reportable Retail Payment Transactions
24.
Subparagraphs A(3)(g) and A(3)(h) require that Reporting Crypto-Asset Service Providers must
report the fair market value of other Transfers sent to, and by, a Reportable User, respectively.
Furthermore, the Reporting Crypto-Asset Service Provider should subdivide the aggregate fair market
value, aggregate number of units and number of Transfers effectuated on behalf of a Reportable User,
during the reporting period, per underlying transfer type, where such transfer type is known by the
Reporting Crypto-Asset Service Provider. For instance, where a Reporting Crypto-Asset Service Provider
is aware that Transfers effectuated on behalf of a Reportable User are due to an airdrop (resulting from a
hard-fork), an airdrop (for reasons other than a hard-fork), income derived from staking, the disbursement,
reimbursement or associated return on a loan, or an exchange for goods or services, it should indicate the
aggregate fair market value, aggregate number of units and number of Transfers effectuated for each
transfer type.
Transfers to External Wallet Addresses
25.
Subparagraph A(3)(i) requires the Reporting Crypto-Asset Service Provider to report, by type of
Relevant Crypto-Asset, the aggregate number of units, as well as the aggregate fair market value, in Fiat
Currency, of Transfers it effectuates on behalf of a Reportable User to any wallet addresses (including
other equivalent identifiers used to describe the destination of a Transfer) not known to be associated with
a virtual asset service provider or financial institution, as defined in the FATF Recommendations. The
Reporting Crypto-Asset Service Provider is not required to report the aggregate number of units or the
aggregate fair market value of Transfers, under subparagraph A(3)(i), in case the Reporting Crypto-Asset
Service Provider knows that the wallet address to which the Relevant Crypto-Asset is transferred is
associated with a virtual asset service provider or financial institution, as defined in the FATF
Recommendations.
26.
This rule does not require the reporting of wallet addresses associated with Transfers of Relevant
Crypto-Assets. However, pursuant to subparagraph D(3) of Section III and to ensure that necessary
information is available to tax administrations in the context of follow up requests, a Reporting CryptoAsset Service Provider is required to collect and retain within its records, for a period not less than five
years, any external wallet addresses (including other equivalent identifiers) associated with Transfers of
Relevant Crypto-Assets that are subject to reporting under subparagraph A(3)(i).
Appropriate reporting period
27.
The information to be reported under paragraphs A(1) through A(3) must be that in respect of the
end of the relevant calendar year or other appropriate reporting period. In determining what is meant by
“appropriate reporting period”, reference must be made to the meaning that the term has at that time under
each jurisdiction’s reporting rules.

Paragraphs II (B) and (C) – Exceptions
TIN
28.

Paragraph B contains an exception pursuant to which a TIN is not required to be reported if either:

a TIN is not issued by the relevant Reportable Jurisdiction; or

the domestic law of the relevant Reportable Jurisdiction does not require the collection of the TIN
issued by such Reportable Jurisdiction.

29.
A TIN is considered not to be issued by a Reportable Jurisdiction (i) where the jurisdiction does
not issue a TIN nor a functional equivalent in the absence of a TIN, or (ii) where the jurisdiction has not

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issued a TIN to a particular individual or Entity. As a consequence, a TIN is not required to be reported
with respect to a Reportable Person that is resident in such a Reportable Jurisdiction, or with respect to
whom a TIN has not been issued. However, if and when a Reportable Jurisdiction starts issuing TINs and
issues a TIN to a particular Reportable Person, the exception contained in paragraph B no longer applies
and the Reportable Person’s TIN would be required to be reported if the Reporting Crypto-Asset Service
Provider obtains a self-certification that contains such TIN, or otherwise obtains such TIN.
30.
The exception described in clause (ii) of paragraph B focuses on the domestic law of the
Reportable Person’s jurisdiction. Where a Reportable Jurisdiction has issued a TIN to a Reportable Person
and the collection of such TIN cannot be required under such jurisdiction’s domestic law (e.g. because
under such law the provision of the TIN by a taxpayer is on a voluntary basis), the Reporting Crypto-Asset
Service Provider is not required to obtain and report the TIN. However, the Reporting Crypto-Asset Service
Provider is not prevented from asking for, and collecting the Reportable Person’s TIN for reporting
purposes if the Reportable Person chooses to provide it. In this case, the Reporting Crypto-Asset Service
Provider must report the TIN. In practice, there may be only a few jurisdictions where this is the case (e.g.
Australia).
31.
Jurisdictions are expected to provide Reporting Crypto-Asset Service Providers with information
with respect to the issuance, collection and, to the extent possible and practical, structure and other
specifications of taxpayer identification numbers. The OECD will endeavour to facilitate its dissemination.

Place of birth
32.
Paragraph C contains an exception with respect to place of birth information, which is not required
to be reported, unless the Reporting Crypto-Asset Service Provider is otherwise required to obtain and
report it under domestic law and it is available in the electronically searchable data maintained by the
Reporting Crypto-Asset Service Provider. Thus, the place of birth is required to be reported if, with respect
to the Reportable Person, both:

the Reporting Crypto-Asset Service Provider is otherwise required to obtain the place of birth and
report it under domestic law; and

the place of birth is available in the electronically searchable information maintained by the
Reporting Crypto-Asset Service Provider.

Paragraphs II (D), (E) and (F) – Valuation and Currency
Valuation and Currency Translation Rules for Crypto-Asset-to-Fiat Currency transactions
33.
Paragraph D provides that, for the purposes of subparagraph A(3)(b) and A(3)(c), the amounts
must be reported in the Fiat Currency in which they were paid. However, in case amounts were paid or
received in multiple Fiat Currencies, they must be reported in a single Fiat Currency, converted at the time
of each Relevant Transaction in a manner that is consistently applied by the Reporting Crypto-Asset
Service Provider. For example, the Reporting Crypto-Asset Service Provider may apply the spot rate(s) as
at the time of the transaction(s) to translate such amounts into a single Fiat Currency determined by the
Reporting Crypto-Asset Service Provider. The information reported must also identify the Fiat Currency in
which each amount is reported.
34.
Further, for the purposes of reporting under subparagraphs A(3)(b) and A(3)(c), the Reporting
Crypto-Asset Service Provider must aggregate, i.e. sum up, all transactions attributable to each reporting
category for each type of Relevant Crypto-Asset, as converted pursuant to paragraph D.

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Valuation and Currency Translation Rules for Crypto-Asset-to-Crypto-Asset transactions
35.
For the purposes of subparagraphs A(3)(d) and A(3)(e), the fair market value must be determined
and reported in a single currency, valued at the time of each Relevant Transaction in a reasonable manner
that is consistently applied by the Reporting Crypto-Asset Service Provider. In this respect, a Reporting
Crypto-Asset Service Provider may rely on applicable Crypto-Asset-to-Fiat Currency trading pairs that it
maintains to determine the fair market value of both Relevant Crypto-Assets. For instance, in respect of a
disposal of Relevant Crypto-Asset A against Relevant Crypto-Asset B, the Reporting Crypto-Asset Service
Provider may, at the time the transaction is executed: (i) perform an implicit conversion of Relevant CryptoAsset A to Fiat Currency to determine the fair market value of the disposed Relevant Crypto-Asset A for
the purposes of reporting under subparagraph A(3)(e); and (ii) perform an implicit conversion of the
acquired Relevant Crypto-Asset B to Fiat Currency to determine the fair market value of the acquired
Relevant Crypto-Asset B for the purposes of reporting under subparagraph A(3)(d).
36.
It may arise that a difficult-to-value Relevant Crypto-Asset is exchanged for a Relevant CryptoAsset that can be readily valued. In such cases, the valuation in Fiat Currency of the Relevant CryptoAsset against which the difficult-to-value Relevant Crypto-Asset is exchanged should be relied upon to
establish a Fiat Currency value for the difficult-to-value Relevant Crypto-Asset, as illustrated by the below
example:

Example: a Crypto-Asset User makes use of a Reporting Crypto-Asset Service Provider to dispose
of Relevant Crypto-Asset A against the acquisition of Relevant Crypto-Asset B. Relevant CryptoAsset A has a readily obtainable Fiat Currency equivalent value and the Reporting Crypto-Asset
Service Provider can perform an implicit conversion to determine the fair market value of the
disposal of Relevant Crypto-Asset A. However, Relevant Crypto-Asset B is a recently launched
Crypto-Asset and the Reporting Crypto-Asset Service Provider is not able to determine an
equivalent fair market value as there is no available Fiat Currency conversion amount. In this case,
to determine the acquisition value attributable to the Crypto-Asset User’s acquisition of CryptoAsset B, the Reporting Crypto-Asset Service Provider can perform an implicit conversion of
Relevant Crypto-Asset B by attributing to it the same Fiat Currency amount attributed to Relevant
Crypto-Asset A.

37.
Further, for the purposes of reporting under subparagraphs A(3)(d) and A(3)(e), the Reporting
Crypto-Asset Service Provider must aggregate, i.e. sum up, all transactions attributable to each reporting
category, as converted pursuant to paragraph D.

Valuation and Currency Translation Rules for Reportable Retail Payment Transactions and
other Transfers
38.
For the purposes of subparagraphs A(3)(f), A(3)(g), A(3)(h) and A(3)(i), the fair market value must
be determined and reported in a single currency, using a reasonable valuation method that looks to
contemporaneous evidence of value at the time of each Relevant Transaction in a manner that is
consistently applied by the Reporting Crypto-Asset Service Provider. In performing such valuation, the
Reporting Crypto-Asset Service Provider may use as a reference the values of Relevant Crypto-Asset and
Fiat Currency trading pairs it maintains to determine the fair market value of the Relevant Crypto-Asset at
the time it is transferred. The information reported must also identify the Fiat Currency in which each
amount is reported. The following example illustrates this approach:

Example: A Reporting Crypto-Asset Service Provider maintains a trading platform and also
facilitates Transfers of Relevant Crypto-Assets. The Reporting Crypto-Asset Service Provider
effectuates a Transfer of Relevant Crypto-Asset A for Crypto-Asset User A. Relevant Crypto-Asset
A is also regularly traded for Fiat Currency on Reporting Crypto-Asset Service Provider’s trading

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platform. The Reporting Crypto-Asset Service Provider A may rely on such trading data to
determine the fair market value of Relevant Crypto-Asset A at the time of the Transfer.
39.
Where the Reporting Crypto-Asset Service Provider effectuating the Transfer does not maintain
an applicable reference value of the Relevant Crypto-Asset and Fiat Currency trading pairs, the following
valuation methods must be relied upon:

firstly, the internal accounting book values the Reporting Crypto-Asset Service Provider maintains
with respect to the Relevant Crypto-Asset must be used;

if a book value is not available, a value provided by third-party companies or websites that
aggregate current prices of Relevant Crypto-Assets must be used, if the valuation method used by
that third party is reasonably expected to provide a reliable indicator of value;

if neither of the above is available, the most recent valuation of the Relevant Crypto-Asset by the
Reporting Crypto-Asset Service Provider must be used; and

if a value can still not be attributed, a reasonable estimate may be applied as a measure of last
resort.

40.
With respect to each Relevant Crypto-Asset for which the Reporting Crypto-Asset Service Provider
has relied on an alternative valuation method outlined in paragraph 39, the method must be indicated via
the appropriate element in the relevant XML Schema.
41.
Further, for the purposes of reporting under subparagraphs A(3)(f), A(3)(g) A(3)(h) and A(3)(i), the
Reporting Crypto-Asset Service Provider must aggregate, i.e. sum up, all transactions attributable to each
reporting category for each type of Relevant Crypto-Asset, as converted pursuant to paragraph D.

Paragraph II (G) – Timing of Reporting
42.
Paragraph G provides the time by which the information pursuant to paragraph A needs to be
reported. While the selection of the date by which information is to be reported by the Reporting CryptoAsset Service Provider is a decision of the jurisdiction implementing the rules, it is expected that such date
will allow the jurisdiction to exchange the information within the timelines specified in the competent
authority agreement.

Commentary on Section III: Due diligence procedures
1.
Section III contains the due diligence procedures for identifying Reportable Persons. These
requirements are split into four paragraphs:

paragraph A sets out the procedures for Individual Crypto-Asset Users;

paragraph B sets out the procedures for Entity Crypto-Asset Users;

paragraph C specifies the validity requirements for self-certifications of Individual Crypto-Asset
Users, Controlling Persons and Entity Crypto-Asset Users; and

paragraph D specifies the general due diligence requirements.

Paragraph A – Due diligence procedures for Individual Crypto-Asset Users
2.
Paragraph A sets out that a Reporting Crypto-Asset Service Provider must collect a selfcertification, and confirm its reasonableness, in respect of its Individual Crypto-Asset Users.
3.
Subparagraph A(1) specifies that, upon the establishment of a relationship with the user, which
may include a one-off transaction, a Reporting Crypto-Asset Service Provider must:

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obtain a self-certification that allows the Reporting Crypto-Asset Service Provider to determine the
Individual Crypto-Asset User’s residence(s) for tax purposes; and

confirm the reasonableness of such self-certification based on the information obtained by the
Reporting Crypto-Asset Service Provider in connection with the establishment of a relationship with
the user. Such information includes information the Reporting Crypto-Asset Service Provider
collected for AML/KYC Procedures.

4.
With respect to Preexisting Individual Crypto-Asset Users, subparagraph A(1) clarifies that
Reporting Crypto-Asset Service Providers must obtain a valid self-certification and confirm its
reasonableness at the latest 12 months after the jurisdiction introduces the rules.

Obtaining a self-certification
5.
The self-certification obtained under subparagraph A(1) must allow the determination of the
Individual Crypto-Asset User’s residence(s) for tax purposes. See Commentary on subparagraph C(1) of
Section III for further details on the required contents of self-certifications for Individual Crypto-Asset Users.
The domestic laws of the various jurisdictions lay down the conditions under which an individual is to be
treated as fiscally “resident”. They cover various forms of attachment to a jurisdiction which, in the domestic
taxation laws, form the basis of a comprehensive taxation (full liability to tax). They also cover cases where
an individual is deemed, according to the taxation laws of a jurisdiction, to be resident of that jurisdiction
(e.g. diplomats or other persons in government service). Generally, an individual will only have one
jurisdiction of residence. However, an individual may be resident for tax purposes in two or more
jurisdictions. In those circumstances, the expectation is that all jurisdictions of residence are to be declared
in a self-certification and that the Reporting Crypto-Asset Service Provider must treat the Individual Crypto
Asset User as a Reportable User in respect of each Reportable Jurisdiction.
6.
Reportable Jurisdictions are expected to help taxpayers determine, and provide them with
information with respect to, their residence(s) for tax purposes. That may be done, for example, through
the various service channels used for providing information or guidance to taxpayers on the application of
tax laws. The OECD will endeavour to facilitate the dissemination of such information.

Reasonableness of self-certifications
7.
Subparagraph A(1) specifies that the Reporting Crypto-Asset Service Provider must confirm the
reasonableness of the self-certification.
8.
A Reporting Crypto-Asset Service Provider is considered to have confirmed the “reasonableness”
of a self-certification if, in the course of establishing a relationship with an Individual Crypto-Asset User
and upon review of the information obtained in connection with the establishment of the relationship
(including any documentation collected pursuant to AML/KYC Procedures), it does not know or have
reason to know that the self-certification is incorrect or unreliable. Reporting Crypto-Asset Service
Providers are not expected to carry out an independent legal analysis of relevant tax laws to confirm the
reasonableness of a self-certification.
9.

The following examples illustrate the application of the “reasonableness” test:

Example 1: A Reporting Crypto-Asset Service Provider obtains a self-certification from the
Individual Crypto-Asset User upon the establishment of the relationship. The jurisdiction of the
residence address contained in the self-certification conflicts with that contained in the
documentation collected pursuant to AML/KYC Procedures. Because of the conflicting information,
the self-certification is incorrect or unreliable and, as a consequence, it fails the reasonableness
test.

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Example 2: A Reporting Crypto-Asset Service Provider obtains a self-certification from the
Individual Crypto-Asset User upon the establishment of the relationship. The residence address
contained in the self-certification is not in the jurisdiction in which the Individual Crypto-Asset User
claims to be resident for tax purposes. Because of the conflicting information, the self-certification
fails the reasonableness test.

10.
In the case of a self-certification that fails the reasonableness test, it is expected that the Reporting
Crypto-Asset Service Provider would obtain either (i) a valid self-certification, or (ii) a reasonable
explanation and documentation (as appropriate) supporting the reasonableness of the self-certification
(and retain a copy or a notation of such explanation and documentation) before providing services
effectuating Relevant Transactions to the Individual Crypto-Asset User. Examples of such “reasonable
explanation” include a statement by the individual that he or she (1) is a student at an educational institution
in the relevant jurisdiction and holds the appropriate visa (if applicable); (2) is a teacher, trainee, or intern
at an educational institution in the relevant jurisdiction or a participant in an educational or cultural
exchange visitor program, and holds the appropriate visa (if applicable); (3) is a foreign individual assigned
to a diplomatic post or a position in a consulate or embassy in the relevant jurisdiction; or (4) is a frontier
worker or employee working on a truck or train travelling between jurisdictions. The following example
illustrates the application of this paragraph: A Reporting Crypto-Asset Service Provider obtains a selfcertification for the Individual Crypto-Asset User upon the establishment of the relationship. The jurisdiction
of residence for tax purposes contained in the self-certification conflicts with the residence address
contained in the documentation collected pursuant to AML/KYC Procedures. The Individual Crypto-Asset
User explains that she is a diplomat from a particular jurisdiction and that, as a consequence, she is
resident in such jurisdiction; she also presents her diplomatic passport. Because the Reporting CryptoAsset Service Provider obtained a reasonable explanation and documentation supporting the
reasonableness of the self-certification, the self-certification passes the reasonableness test.

Reliance on self-certifications
11.
Subparagraph A(2) specifies that if, at any point, there is a change of circumstances with respect
to an Individual Crypto-Asset User that causes the Reporting Crypto-Asset Service Provider to know, or
have reason to know, that the original self-certification is incorrect or unreliable, the Reporting CryptoAsset Service Provider cannot rely on the original self-certification and must obtain a valid self-certification,
or a reasonable explanation and documentation (as appropriate) supporting the validity of the original selfcertification.

Standards of knowledge applicable to self-certifications
12.
A Reporting Crypto-Asset Service Provider has reason to know that a self-certification is unreliable
or incorrect if its knowledge of relevant facts or statements contained in the self-certification or other
documentation is such that a reasonably prudent person in the position of the Reporting Crypto-Asset
Service Provider would question the claim being made. A Reporting Crypto-Asset Service Provider also
has reason to know that a self-certification or is unreliable or incorrect if there is information in the
documentation or in the Reporting Crypto-Asset Service Provider’s files that conflicts with the person’s
claim regarding its status.
13.
A Reporting Crypto-Asset Service Provider has reason to know that a self-certification provided by
a person is unreliable or incorrect if the self-certification is incomplete with respect to any item on the selfcertification that is relevant to the claims made by the person, the self-certification contains any information
that is inconsistent with the person’s claim, or the Reporting Crypto-Asset Service Provider has other
information that is inconsistent with the person’s claim. A Reporting Crypto-Asset Service Provider that
relies on a service provider to review and maintain a self-certification is considered to know or have reason
to know the facts within the knowledge of the service provider.

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14.
A Reporting Crypto-Asset Service Provider may not rely on documentation provided by a person
if the documentation does not reasonably establish the identity of the person presenting the
documentation. For example, documentation is not reliable if it is provided in person by an individual and
the photograph or signature on the documentation does not match the appearance or signature of the
person presenting the document. A Reporting Crypto-Asset Service Provider may not rely on
documentation if the documentation contains information that is inconsistent with the person’s claim as to
its status, the Reporting Crypto-Asset Service Provider has other information that is inconsistent with the
person’s status, or the documentation lacks information necessary to establish the person’s status.

Change of circumstances
15.
A “change of circumstances” includes any change that results in the addition of information
relevant to an Individual Crypto-Asset User’s status or otherwise conflicts with such user’s status or any
change or addition of information to any profile associated with such Individual Crypto-Asset User if such
change or addition of information affects the status of the Individual Crypto-Asset User. For these
purposes, the Reporting Crypto-Asset Service Provider should determine whether new information that is
obtained with respect to the Individual Crypto-Asset User’s profile in accordance with re-documentation
undertaken in accordance with AML/KYC Procedures or other regulatory obligations includes new
information that constitutes a change of circumstances. A change of circumstances affecting the selfcertification provided to the Reporting Crypto-Asset Service Provider will terminate the validity of the selfcertification with respect to the information that is no longer reliable, until the information is updated.
16.
When a change of circumstances occurs, according to subparagraph A(2), the Reporting CryptoAsset Service Provider cannot rely on the original self-certification and must obtain either (i) a valid selfcertification that establishes the residence(s) for tax purposes of the Individual Crypto-Asset User, or (ii) a
reasonable explanation and documentation (as appropriate) supporting the validity of the original selfcertification (and retain a copy or a notation of such explanation and documentation). Therefore, a
Reporting Crypto-Asset Service Provider is expected to institute procedures to ensure that any change
that constitutes a change in circumstances is identified by the Reporting Crypto-Asset Service Provider. In
addition, a Reporting Crypto-Asset Service Provider is expected to notify any person providing a selfcertification of the person’s obligation to notify the Reporting Crypto-Asset Service Provider of a change in
circumstances.
17.
A self-certification becomes invalid on the date that the Reporting Crypto-Asset Service Provider
holding the self-certification knows or has reason to know that circumstances affecting the correctness of
the self-certification have changed. However, a Reporting Crypto-Asset Service Provider may choose to
treat a person as having the same status that it had prior to the change in circumstances until the earlier
of 90 calendar days from the date that the self-certification became invalid due to the change in
circumstances, the date that the validity of the self-certification is confirmed, or the date that a new selfcertification is obtained. If the Reporting Crypto-Asset Service Provider cannot obtain a confirmation of the
validity of the original self-certification or a valid self-certification during such 90-day period, the Reporting
Crypto-Asset Service Provider must treat the Individual Crypto-Asset User as resident of the jurisdiction(s)
in which the Individual Crypto-Asset User claimed to be resident in the original self-certification and the
jurisdiction(s) in which the Individual Crypto-Asset User may be resident as a result of the change in
circumstances. A Reporting Crypto-Asset Service Provider may rely on a self-certification without having
to inquire into possible changes of circumstances that may affect the validity of the statement, unless it
knows or has reason to know that circumstances have changed. For instance, where the Reporting CryptoAsset Service Provider obtains information pursuant to its AML/KYC Procedures or other regulatory
requirements that information contained in the self-certification is no longer accurate or reliable, the
Reporting Crypto-Asset Service Provider must update the self-certification with respect to the information
identified, before the self-certification can be relied on.

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18.
A Reporting Crypto-Asset Service Provider may retain an original, certified copy, or photocopy
(including a microfiche, electronic scan, or similar means of electronic storage) or electronic copy of the
self-certification. The self-certification (including the original) may also exist solely in electronic format.

Curing self-certification errors
19.
A Reporting Crypto-Asset Service Provider may treat a self-certification as valid, notwithstanding
that the self-certification contains an inconsequential error, if the Reporting Crypto-Asset Service Provider
has sufficient documentation on file to supplement the information missing from the self-certification due
to the error. In such case, the documentation relied upon to cure the inconsequential error must be
conclusive. For example, a self-certification in which the Individual Crypto-Asset User submitting the form
abbreviated the jurisdiction of residence may be treated as valid, notwithstanding the abbreviation, if the
Reporting Crypto-Asset Service Provider has government issued identification for the person from a
jurisdiction that reasonably matches the abbreviation. On the other hand, an abbreviation for the jurisdiction
of residence that does not reasonably match the jurisdiction of residence shown on the person’s passport
is not an inconsequential error. A failure to provide a jurisdiction of residence is not an inconsequential
error. In addition, information on a self-certification that contradicts other information contained on the selfcertification or in the files of the Reporting Crypto-Asset Service Provider is not an inconsequential error.

Paragraph B – Due diligence procedures for Entity Crypto-Asset Users
20.
Paragraph B contains the due diligence procedures for Entity Crypto-Asset Users. Such
procedures require Reporting Crypto-Asset Service Providers to determine:

whether the Entity Crypto-Asset User is a Reportable User; and

whether an Entity Crypto-Asset User has one or more Controlling Persons who are Reportable
Persons, unless the Entity Crypto-Asset User is an Excluded Person or an Active Entity.

21.
With respect to Preexisting Entity Crypto-Asset Users, subparagraph B(1)(a) clarifies that
Reporting Crypto-Asset Service Providers must obtain a valid self-certification and confirm its
reasonableness at the latest 12 months after the jurisdiction introduces these rules.

Review procedure for Entity Crypto-Asset Users
22.
Subparagraph B(1) contains the review procedure to determine whether an Entity Crypto-Asset
User is a Reportable User. In order to determine whether an Entity Crypto-Asset User is a Reportable
User, subparagraph B(1)(a) requires that, when establishing a relationship with the Entity Crypto-Asset
User, or with respect to Preexisting Entity Crypto-Assets Users by 12 months after the introduction of the
rules, the Reporting Crypto-Asset Service Provider:

obtains a self-certification that allows the Reporting Crypto-Asset Service Provider to determine
the Entity Crypto-Asset User’s residence(s) for tax purposes; and

confirms the reasonableness of such self-certification based on the information obtained by the
Reporting Crypto-Asset Service Provider in connection with the establishment of the relationship
with the Entity Crypto-Asset User, including any documentation collected pursuant to AML/KYC
Procedures. If the Entity Crypto-Asset User certifies that it has no residence for tax purposes, the
Reporting Crypto-Asset Service Provider may rely on the place of effective management or the
address of the principal office to determine the residence of the Entity Crypto-Asset User.

23.
If the self-certification indicates that the Entity Crypto-Asset User is resident in a Reportable
Jurisdiction, then, as provided in subparagraph B(1)(b), the Reporting Crypto-Asset Service Provider must
treat the Entity Crypto-Asset User as a Reportable User unless it reasonably determines based on the selfcertification or information in its possession or that is publicly available, that the Entity Crypto-Asset User

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is an Excluded Person. Such information includes information that was obtained for the purpose of
completing the due diligence procedures pursuant to the Common Reporting Standard.
24.
“Publicly available” information includes information published by an authorised government body
(for example, a government or an agency thereof, or a municipality) of a jurisdiction, such as information
in a list published by a tax administration; information in a publicly accessible register maintained or
authorised by an authorised government body of a jurisdiction; or information disclosed on an established
securities market. In this respect, the Reporting Crypto-Asset Service Provider is expected to retain a
notation of the type of information reviewed, and the date the information was reviewed.
25.
In determining whether an Entity Crypto-Asset User is a Reportable User, the Reporting CryptoAsset Service Provider may follow the guidance on subparagraphs B(1)(a) and (b) in the order most
appropriate under the circumstances. That would allow a Reporting Crypto-Asset Service Provider, for
example, to determine under subparagraph B(1)(b) that an Entity Crypto-Asset User is an Excluded Person
and, thus, is not a Reportable User.
26.
The self-certification must allow the determination of the Entity Crypto-Asset User’s residence(s)
for tax purposes. The domestic laws of the various jurisdictions lay down the conditions under which an
Entity is to be treated as fiscally “resident”. They cover various forms of attachment to a jurisdiction which,
in the domestic taxation laws, form the basis of a comprehensive taxation (full tax liability). Generally, an
Entity will be resident for tax purposes in a jurisdiction if, under the laws of that jurisdiction, it pays or should
be paying tax therein by reason of its place of management or incorporation, or any other criterion of a
similar nature, and not only from sources in that jurisdiction. If an Entity is subject to tax as a resident in
more than one jurisdiction, all jurisdictions of residence are to be declared in a self-certification and the
Reporting Crypto-Asset Service Provider must treat the Entity Crypto-Asset User as a Reportable User in
respect of each Reportable Jurisdiction.
27.
Reportable Jurisdictions are expected to help taxpayers determine, and provide them with
information with respect to, their residence(s) for tax purposes. That may be done, for example, through
the various service channels used for providing information or guidance to taxpayers on the application of
tax laws. The OECD will endeavour to facilitate the dissemination of such information.
28.
If an Entity Crypto-Asset User certifies that it has no residence for tax purposes, the Reporting
Crypto-Asset Service Provider may rely on the place of effective management or, as a proxy, on the
address of the principal office of the Entity Crypto-Asset User to determine its residence. Examples of
cases where an Entity Crypto-Asset User has no residence for tax purposes includes Entities treated as
fiscally transparent and Entities resident in a jurisdiction with no corporate income tax system.

Reasonableness of self-certifications
29.
Once the Reporting Crypto-Asset Service Provider has obtained a self-certification that allows it
to determine the Entity Crypto-Asset User’s residence(s) for tax purposes, the Reporting Crypto-Asset
Service Provider must confirm the reasonableness of such self-certification based on the information
obtained in connection with the establishment of the relationship, including any documentation collected
pursuant to AML/KYC Procedures.
30.
A Reporting Crypto-Asset Service Provider is considered to have confirmed the “reasonableness”
of a self-certification if, in the course of establishing a relationship with the Entity Crypto-Asset User and
upon review of the information obtained in connection with the establishment of the relationship (including
any documentation collected pursuant to AML/KYC Procedures), it does not know or have reason to know
that the self-certification is incorrect or unreliable. Reporting Crypto-Asset Service Providers are not
expected to carry out an independent legal analysis of relevant tax laws to confirm the reasonableness of
a self-certification.
31.

The following examples illustrate the application of the “reasonableness” test:
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Example 1: A Reporting Crypto-Asset Service Provider obtains a self-certification from the Entity
Crypto-Asset User upon the establishment of the relationship. The address contained in the selfcertification conflicts with that contained in the documentation collected pursuant to AML/KYC
Procedures. Because of the conflicting information, the self-certification is incorrect or unreliable
and, as a consequence, it fails the reasonableness test.

Example 2: A Reporting Crypto-Asset Service Provider obtains a self-certification from the Entity
Crypto-Asset User upon the establishment of the relationship. The documentation collected
pursuant to AML/KYC Procedures only indicates the Entity Crypto-Asset User’s place of
incorporation. In the self-certification, the Entity Crypto-Asset User claims to be resident for tax
purposes in a jurisdiction that is different from its jurisdiction of incorporation. The Entity CryptoAsset User explains to the Reporting Crypto-Asset Service Provider that under relevant tax laws
its residence for tax purposes is determined by reference to place of effective management, and
that the jurisdiction where its effective management is situated differs from the jurisdiction in which
it was incorporated. Thus, because there is a reasonable explanation of the conflicting information,
the self-certification is not incorrect or unreliable and, as a consequence, passes the
reasonableness test.

32.
In the case of a self-certification that fails the reasonableness test, it is expected that the Reporting
Crypto-Asset Service Provider would obtain either (i) a valid self-certification, or (ii) a reasonable
explanation and documentation (as appropriate) supporting the reasonableness of the self-certification
(and retain a copy or a notation of such explanation and documentation) before providing services
effectuating Relevant Transactions to the Entity Crypto-Asset User. Further guidance in this respect can
be found in the Commentary to paragraph A of Section III.

Review procedure for Controlling Persons
33.
Subparagraph B(2) contains the review procedure to determine whether an Entity Crypto-Asset
User, other than an Excluded Person, is held by one or more Controlling Persons that are Reportable
Persons, unless it determines that the Entity Crypto-Asset User is an Active Entity. Such determination
should be made based on a self-certification, the reasonableness of which should be confirmed based on
any relevant information available to the Reporting Crypto-Asset Service Provider. When the Reporting
Crypto-Asset Service Provider has not determined that the Entity Crypto-Asset User is an Active Entity,
then the Reporting Crypto-Asset Service Provider must follow the guidance in subparagraphs B(2)(a) and
(b) in the order most appropriate under the circumstances. Those subparagraphs are aimed at:

determining the Controlling Persons of an Entity Crypto-Asset User; and

determining whether any Controlling Persons of the Entity Crypto-Asset User are Reportable
Persons.

34.
For the purposes of determining the Controlling Persons of an Entity Crypto-Asset User, according
to subparagraph B(2)(a), a Reporting Crypto-Asset Service Provider may rely on information collected and
maintained pursuant to AML/KYC Procedures, provided that such procedures are consistent with the 2012
FATF Recommendations (as updated in June 2019 pertaining to virtual asset service providers). If the
Reporting Crypto-Asset Service Provider is not legally required to apply AML/KYC Procedures that are
consistent with the 2012 FATF Recommendations (as updated in June 2019 pertaining to virtual asset
service providers), it must apply substantially similar procedures for the purpose of determining the
Controlling Persons.
35.
For the purposes of determining whether a Controlling Person of an Entity Crypto-Asset User is a
Reportable Person, a Reporting Crypto-Asset Service Provider must, pursuant to subparagraph B(2)(b),
rely on a self-certification from either the Entity Crypto-Asset User or the Controlling Person and confirm
the reasonableness of such self-certification based on the information obtained by the Reporting CryptoAsset Service Provider, including any documentation collected pursuant to AML/KYC Procedures.
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Change of circumstances
36.
Subparagraph B(3) specifies that if, at any point, there is a change of circumstances with respect
to an Entity Crypto-Asset User or its Controlling Person(s) that causes the Reporting Crypto-Asset Service
Provider to know, or have reason to know, that the self-certification or other documentation associated with
an Entity Crypto-Asset User or its Controlling Person(s) is incorrect or unreliable, the Reporting CryptoAsset Service Provider cannot rely on the original self-certification and must re-determine their status. In
doing so, the procedures set forth in paragraphs 15 through 18 of the Commentary on Section III should
be applied.

Paragraph C – Requirements for validity of self-certifications
37.
Paragraph C sets out the requirements for obtaining valid self-certifications with respect to
Individual and Entity Crypto-Asset Users, as well as Controlling Persons.

Validity of self-certifications for Individual Crypto-Asset Users and Controlling Persons
38.
A self-certification referred to in subparagraph C(1) is a certification by the Individual Crypto-Asset
User or Controlling Person that provides the Individual Crypto-Asset User’s or Controlling Person’s status
and any other information that may be reasonably requested by the Reporting Crypto-Asset Service
Provider to fulfil its reporting and due diligence obligations, such as whether the Individual Crypto-Asset
User or the Controlling Person is resident for tax purposes in a Reportable Jurisdiction. A self-certification
is valid only if it is signed (or otherwise positively affirmed) by the Individual Crypto-Asset User or
Controlling Person, it is dated at the latest at the date of receipt, and it contains the following information
with respect to the Individual Crypto-Asset User or Controlling Person:
a) first and last name;
b) residence address;
c) jurisdiction(s) of residence for tax purposes;
d) with respect to each Reportable Person, the TIN with respect to each Reportable Jurisdiction;
and
e) date of birth.
39.
The self-certification may be pre-populated by the Reporting Crypto-Asset Service Provider to
include the Individual Crypto-Asset User’s or Controlling Person’s information, except for the jurisdiction(s)
of residence for tax purposes, to the extent already available in its records. Further, the Reporting CryptoAsset Service Provider may rely on a self-certification collected in respect of the Individual Crypto-Asset
User or Controlling Person under the Common Reporting Standard or a self-certification already collected
for other tax purposes, such as for domestic reporting purposes, in the context of the Foreign Account Tax
Compliance Act (FATCA), or for purposes of a FATCA Intergovernmental Agreement, to the extent it
contains all of the information referred to in subparagraph C(1).
40.
If the Individual Crypto-Asset User or Controlling Person is resident for tax purposes in a
Reportable Jurisdiction, the self-certification must include the Individual Crypto-Asset User’s or Controlling
Person’s TIN with respect to each Reportable Jurisdiction, subject to subparagraph C(3).
41.
The self-certification may be provided in any manner and in any form. If the self-certification is
provided electronically, the electronic system must ensure that the information received is the information
sent, and must document all occasions of user access that result in the submission, renewal, or
modification of a self-certification. In addition, the design and operation of the electronic system, including
access procedures, must ensure that the person accessing the system and furnishing the self-certification

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is the person named in the self-certification, and must be capable of providing upon request a hard copy
of all self-certifications provided electronically.
42.
A self-certification may be signed (or otherwise positively affirmed) by any person authorised to
sign on behalf of the Individual Crypto-Asset User or Controlling Person under domestic law.
43.
Subparagraph C(3) specifies that, notwithstanding the requirements under subparagraphs C(1)
and (2) to obtain a TIN in respect of Reportable Users and of Controlling Persons of Entity Crypto-Asset
Users that are Reportable Persons, the TIN is not required to be collected if the jurisdiction of residence of
the Reportable Person does not issue a TIN to the Reportable Person.

Validity of self-certifications for Entity Crypto-Asset Users
44.
A self-certification is a certification by the Entity Crypto-Asset User that provides the Entity CryptoAsset User’s status and any other information that may be reasonably requested by the Reporting CryptoAsset Service Provider to fulfil its reporting and due diligence obligations, such as whether the Entity
Crypto-Asset User is resident for tax purposes in a Reportable Jurisdiction. A self-certification is valid only
if it is dated at the latest at the date of receipt, and it contains the Entity Crypto-Asset User’s:
a) legal name;
b) address;
c) jurisdiction(s) of residence for tax purposes; and
d) with respect to each Reportable Person, the TIN with respect to each Reportable
Jurisdiction; and
e) in case of an Entity Crypto-Asset User other than an Active Entity or an Excluded Person,
the information described in subparagraph C(1) with respect to each Controlling Person of
the Entity Crypto-Asset User, unless such Controlling Person has provided a selfcertification pursuant to subparagraph C(1), as well as the role(s) by virtue of which each
Reportable Person is a Controlling Person of the Entity, if not already determined on the
basis of AML/KYC Procedures; and
f)

if applicable, information as to the criteria it meets to be treated as an Active Entity or
Excluded Person.

45.
The self-certification may be pre-populated by the Reporting Crypto-Asset Service Provider to
include the Entity Crypto-Asset User’s information, except for the jurisdiction(s) of residence for tax
purposes, to the extent already available in its records. Further, the Reporting Crypto-Asset Service
Provider may rely on a self-certification collected in respect of the Entity Crypto-Asset User under the
Common Reporting Standard or a self-certification already collected for other tax purposes, such as for
domestic reporting purposes, in the context of FATCA, or for purposes of a FATCA Intergovernmental
Agreement, to the extent it contains all of the information referred to in subparagraph C(2).
46.
A self-certification may be signed (or otherwise positively affirmed) by any person authorised to
sign on behalf of the Entity Crypto-Asset User under domestic law. A person with authority to sign a selfcertification of an Entity Crypto-Asset User generally includes an officer or director of a corporation, a
partner of a partnership, a trustee of a trust, any equivalent of the former titles, and any other person that
has been provided written authorisation by the Entity Crypto-Asset User to sign documentation on such
person’s behalf.
47.
The requirements for the validity of self-certifications with respect to Individual Crypto-Asset Users
or Controlling Persons in paragraphs 40 and 41 of this section are also applicable for the validity of selfcertifications with respect to Entity Crypto-Asset Users.

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Paragraph D – General due diligence requirements
48.
Subparagraph D(1) seeks to ensure consistent application of the due diligence procedures when
a Reporting Crypto-Asset Service Provider is also a Reporting Financial Institution pursuant to the
Common Reporting Standard. In such instances, where a Reporting Crypto-Asset Service Provider, by
virtue of also being a Reporting Financial Institution, has completed the due diligence procedures pursuant
to Sections IV and VI of the Common Reporting Standard, such Reporting Crypto-Asset Service Provider
may rely on such procedures to fulfil its due diligence obligations under the Crypto-Asset Reporting
Framework.
49.
A Reporting Crypto-Asset Service Provider may also rely on a self-certification already collected
for other tax purposes, such as for domestic reporting purposes, in the context of FATCA, or for purposes
of a FATCA Intergovernmental Agreement, provided such self-certification meets the requirements of
paragraph C of this Section. In such instances, a Reporting Crypto-Asset Service Provider is still subject
to the other elements of the due diligence procedures of Section III.
50.
A Reporting Crypto-Asset Service Provider may rely on a third party to fulfil the due diligence
obligations. The following situations apply in which Reporting Crypto-Asset Service Provider will rely on
documentation of a third party to fulfil its due diligence obligations: first, with respect to documentation
collected by third party service providers, agents or where a Reporting Crypto-Asset Service Provider relies
on documentation of an acquired business and, secondly, with respect to the situation where a Reporting
Crypto-Asset Service Provider relies on other Reporting Crypto-Asset Service Providers that handle the
same Relevant Transaction. These scenarios are described, in turn, below.
51.
Pursuant to subparagraph D(2), [Jurisdiction] may allow Reporting Crypto-Asset Service Providers
to use service providers to fulfil their due diligence obligations. In such cases, Reporting Crypto-Asset
Service Providers may use the documentation (including a self-certification) collected by service providers,
subject to the conditions described in domestic law. The due diligence obligations remain, however, the
responsibility of the Reporting Crypto-Asset Service Providers.
52.
A Reporting Crypto-Asset Service Provider may also rely on documentation (including a selfcertification) collected by an agent of the Reporting Crypto-Asset Service Provider. The agent may retain
the documentation as part of an information system maintained for a single Reporting Crypto-Asset Service
Provider or multiple Reporting Crypto-Asset Service Providers provided that under the system, any
Reporting Crypto-Asset Service Provider on behalf of which the agent retains documentation may easily
access data regarding the nature of the documentation, the information contained in the documentation
(including a copy of the documentation itself) and its validity, and must allow such Reporting Crypto-Asset
Service Provider to easily transmit data, either directly into an electronic system or by providing such
information to the agent, regarding any facts of which it becomes aware that may affect the reliability of
the documentation. The Reporting Crypto-Asset Service Provider must be able to establish, to the extent
applicable, how and when it has transmitted data regarding any facts of which it became aware that may
affect the reliability of the documentation and must be able to establish that any data it has transmitted has
been processed and appropriate due diligence has been exercised regarding the validity of the
documentation. The agent must have a system in effect to ensure that any information it receives regarding
facts that affect the reliability of the documentation or the status assigned to the Crypto-Asset User are
provided to all Reporting Crypto-Asset Service Providers for which the agent retains the documentation.
53.
A Reporting Crypto-Asset Service Provider that acquires the business of another Reporting
Crypto-Asset Service Provider that has completed all the due diligence required under Section III with
respect to the Individual Crypto-Asset Users transferred, would generally be permitted to also rely upon
the predecessor’s or transferor’s determination of status of an Individual Crypto-Asset User until the
acquirer knows, or has reason to know, that the status is inaccurate or a change in circumstances occurs.

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54.
Subparagraph D(2) also seeks to avoid duplicative or multiple application of the due diligence
procedures by individuals or Entities that are all Reporting Crypto-Asset Service Providers effectuating the
same Relevant Transaction with respect to the same Crypto-Asset User. This is particularly relevant in
instances where another Reporting Crypto-Asset Service Provider may have better access to information
to carry out the due diligence procedures, as it is recognised that not all functionalities or services
associated with a given Relevant Transaction are necessarily provided by a single individual or Entity. In
certain instances, these functionalities may be split among different individuals or Entities that could each
be a Reporting Crypto-Asset Service Provider in respect of the Relevant Transaction. For instance, a
broker in Relevant Crypto-Assets may receive an order from a client to conduct a Relevant Transaction in
Crypto-Assets. The broker could transmit the client’s order to a trading platform, which effectuates the
transaction on behalf of the client. In this case, the broker is a Reporting Crypto-Asset Service Provider
where it acts on behalf of a client to complete orders to buy or sell interest in Relevant Crypto-Assets.
Similarly, the trading platform is also a Reporting Crypto-Asset Service Provider as it conducts the actual
Exchange Transaction. As a result there may be more than one Reporting Crypto-Asset Service Provider
effectuating the same Relevant Transaction with respect to the same Crypto-Asset User.
55.
Subparagraph D(2) allows Reporting Crypto-Asset Service Providers to designate a single
Reporting Crypto-Asset Service Provider to comply with all due diligence requirements, in case multiple
Reporting Crypto-Asset Service Providers provide services effectuating the same Relevant Transaction.
56.
To that end, a Reporting Crypto-Asset Service Provider may rely on a third party to fulfil the due
diligence obligations set out in Section III. In order for a Reporting Crypto-Asset Service Provider to be
able to rely on a third party (including another Reporting Crypto-Asset Service Provider) for the
performance of the due diligence obligations under Section III, appropriate contractual arrangements
should be put in place. Such arrangements should include an obligation for the Reporting Crypto-Asset
Service Provider to make the information necessary to comply with the due diligence procedures of the
Crypto-Asset Reporting Framework available to the third party(ies) fulfilling such obligations. This would
include information held by the Reporting Crypto-Asset Service Provider that is needed by a third party(ies)
to complete the due diligence procedures. The arrangements should also ensure that the Reporting
Crypto-Asset Service Provider can obtain any information collected and verified in respect of Crypto-Asset
Users from the third party(ies) to allow the Reporting Crypto-Asset Service Provider to demonstrate
compliance with the requirements of Section III, for instance in the framework of an audit.
57.
It is important to note that the fact that a Reporting Crypto-Asset Service Provider relies on a third
party (including another Reporting Crypto-Asset Service Provider) to complete the due diligence
procedures does not mean that the Reporting Crypto-Asset Service Provider is discharged from its
obligations under Section III. Rather, subparagraph D(2) stipulates that the Reporting Crypto-Asset Service
Provider remains responsible for the completion of the due diligence procedures.
58.
Subparagraph D(3) specifies relevant information retention obligations, whereby a Reporting
Crypto-Asset Service Provider is required to ensure that all documentation and data remain available for
a period of not less than five years (in order to correspond to the requirements for record-keeping pursuant
to the Global Forum Standard for the Exchange of Information upon Request) after the end of the period
within which the Reporting Crypto-Asset Service Provider must report the information required to be
reported pursuant to Section II, including in instances where the Reporting Crypto-Asset Service Provider
is liquidated or otherwise terminates its business. Such information includes any information used to
identify the Crypto-Asset User, as well as any external wallet addresses (or other equivalent identifiers)
associated with Transfers of Relevant Crypto-Assets that are subject to reporting under subparagraph
A(3)(i).

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Commentary on Section IV: Defined terms
Paragraph IV (A) – Relevant Crypto-Asset
Subparagraph A(1) – Crypto-Asset
1.
The term “Crypto-Asset”, as defined in subparagraph A(1), refers to a digital representation of
value that relies on a cryptographically secured distributed ledger or a similar technology to validate and
secure transactions.
2.
In this context, a “digital representation of value” means that a Crypto-Asset must represent a right
to value, and that the ownership of, or right to, such value can be traded or transferred to other individuals
or Entities in a digital manner. For instance, a token based on cryptography that allows individuals to store
value, engage in payments and that does not represent any claims or rights of memberships against a
person, rights to property or other absolute or relative rights is a Crypto-Asset.
3.
Furthermore, a cryptographic token that represents claims or rights of membership against an
individual or Entity, rights to property or other absolute or relative rights (e.g. a security token or a derivative
contract or right to purchase or sell an asset, including a Financial Asset and a Crypto-Asset, at a set date,
price or other pre-determined factor), and that can be digitally exchanged for Fiat Currencies or other
Crypto-Assets, is a Crypto-Asset. For instance, the following examples illustrate the reporting requirements
in respect of derivatives:

Example 1: (Crypto-Derivative A, a cryptographic token, purchased with Relevant Crypto-Assets
(i.e. stablecoins that are not Specified Electronic Money Products)): Crypto-Derivative A,
represents a leveraged interest in an underlying Relevant Crypto-Asset, such that, the value of
Crypto-Derivative A will mirror changes in the price of the underlying Relevant Crypto-Asset (either
upwards or downwards) at three times the change in market price.
User 1 purchases one unit of Crypto-Derivative A through consideration in the form of stablecoins.
As Crypto-Derivative A is a Relevant Crypto-Asset, it is reportable under the Crypto-Asset
Reporting Framework, provided the trade is carried out through a Reporting Crypto-Asset Service
Provider. The trade entails the following Relevant Transactions:
1. Disposal of the stablecoin by User 1, reported in Fiat Currency at the fair market value, along
with the number of units; and
2. Acquisition of Crypto-Derivative A by User 1, reported in Fiat Currency at the fair market value,
along with the number of units.

Example 2: (Redeeming Crypto-Derivative A, with settlement in stablecoins): Further to the trade
in Example 1, User 1 redeems Crypto-Derivative A with the issuer. When User 1 redeems CryptoDerivative A, the market price of the underlying Relevant Crypto-Asset has gained 10% since User
1 purchased Crypto-Derivative A. User 1’s gains are magnified by the leverage of the token, and
User 1 redeems Crypto-Derivative A with the issuer for a value 30% greater than the initial
purchase price. The Reporting Crypto-Asset Service Provider pays this redemption amount to User
1’s wallet in stablecoins. The trade entails the following Relevant Transactions:
1. Disposal of Crypto-Derivative A, valued in Fiat Currency at its fair market value, along with
the number of units; and
2. Acquisition of stablecoin, valued in Fiat Currency at their fair market value, along with the
number of units.

Example 3: (Traditional derivative contract settled by physical delivery of a Relevant Crypto-Asset):
Two counterparties, Buyer and Seller, enter into opposing positions of a futures contract to,
respectively, purchase and sell Relevant Crypto-Asset B on a specified date. The settlement of the

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derivative requires Buyer to purchase Relevant Crypto-Asset B from Seller on a specified date and
at a pre-determined price, paid in Fiat Currency. Seller is then obliged to physically deliver Relevant
Crypto-Asset B to Buyer’s wallet address. On the specified date, Buyer and Seller conduct the
transaction, by using a Reporting Crypto-Asset Service Provider to facilitate the following Relevant
Transactions in respect of Relevant Crypto-Asset B:
1. Disposal of Relevant Crypto-Asset B by Seller, reported at the Fiat Currency received, along
with the number of units; and
2. Acquisition of Relevant Crypto-Asset B by Buyer, reported at the Fiat Currency paid, along
with the number of units.
4.
The term “Crypto-Asset” is intended to cover any digital representation of value that relies on a
cryptographically secured distributed ledger or a similar technology to validate and secure transactions,
where the ownership of, or right to, such value can be traded or transferred to other individuals or Entities
in a digital manner. As such, the term “Crypto-Asset” encompasses both fungible and non-fungible tokens
and therefore includes non-fungible tokens (NFTs) representing rights to collectibles, games, works of art,
physical property or financial documents that can be traded or transferred to other individuals or Entities
in a digital manner.
5.
Other uses of cryptographic technology that are not digital representations of value, are not CryptoAssets. Examples include the use of cryptography to:

create a decentralized immutable record of activities or materials involved in making, storing,
shipping or delivering a product, where the record does not convey any ownership rights in such
product; or

a declarative record of ownership of assets (such as a real estate ledger or similar agreement)
where the record does not convey any ownership rights in the assets represented by such record.

6.
In addition to having inherent value that is digitally tradable or transferable, a Crypto-Asset must
rely on a cryptographically secured distributed ledger or similar technology to validate and secure
transactions whether or not the transaction is actually recorded on such distributed ledger or similar
technology. A distributed ledger is a decentralised manner for recording transactions in Crypto-Assets in
multiple places and at the same time. Cryptography refers to a mathematical and computational practice
of encoding and decoding data that is used to validate and secure transactions in a decentralised or nonintermediated manner. The cryptographic process is used to ensure, in a decentralised manner, the
integrity of Crypto-Assets, the clear assignment of Crypto-Assets to users, and the disposal of CryptoAssets.
7.
This cryptographic process allows multiple parties to engage in disintermediated validations of
transactions in the Crypto-Asset, often by verifying public and private cryptographic keys to a transaction.
This validation ensures that users in possession of a Crypto-Asset have not already exchanged the same
Crypto-Asset in another transaction. The cryptographic process also secures transactions made in CryptoAssets by compiling each transaction within a block of other transactions. The block of transactions is then
added to the official, publicly accessible, transaction ledger (such as a blockchain) once the user completes
a cryptographic hash.
8.
Crypto-Assets may also rely on similar technology that allows for the disintermediated holding or
validating of Crypto-Assets. Regardless of the type of software used, if the technology underpinning the
Crypto-Asset allows for validating and securing digital transactions in a decentralised or disintermediated
manner, it is considered a similar technology to a cryptographically secured distributed ledger.

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Subparagraph A(2) – Relevant Crypto-Assets
9.
Relevant Crypto-Assets are Crypto-Assets in respect of which Reporting Crypto-Asset Service
Providers must fulfil reporting and due diligence requirements. The term Relevant Crypto-Assets applies
to all Crypto-Assets except Central Bank Digital Currencies, Specified Electronic Money Products and
Crypto-Assets for which the Reporting Crypto-Asset Service Provider has adequately determined that they
cannot be used for payment or investment purposes. If an individual or Entity is a Reporting Crypto-Asset
Service Provider (e.g. because it otherwise carries out exchanges in Relevant Crypto-Assets), it would
nevertheless not be required to report information with respect to exchanges carried out in Crypto-Assets
that are not Relevant Crypto-Assets.
10.
For the purpose of adequately determining whether a Crypto-Asset cannot be used for payment
or investment purposes, Reporting Crypto-Asset Service Providers may, in a first step, rely on the
classification of the Crypto-Asset that was made for the purpose of determining whether the Crypto-Asset
is a virtual asset for AML/KYC purposes pursuant to the FATF Recommendations. In case a Crypto-Asset
is considered a virtual asset pursuant to FATF Recommendations by virtue of being able to be used for
payment or investment purposes, it is to be considered a Relevant Crypto-Asset for purposes of the CryptoAsset Reporting Framework.
11.
Where an asset is not a virtual asset pursuant to FATF Recommendations or the Reporting CryptoAsset Service Provider has not made a determination to that effect, the Reporting Crypto-Asset Service
Provider must determine, for each Crypto-Asset, whether it cannot be used for payment or investment
purposes. Only when this test can be positively affirmed, the Crypto-Asset is not to be considered a
Relevant Crypto-Asset. In case of doubts as to whether the Crypto-Asset can be used for payment or
investment purposes, the Crypto-Asset is to be considered a Relevant Crypto-Asset.
12.
In assessing whether a Crypto-Asset cannot be used for payment or investment purposes, the
following aspects may be taken into account:

Crypto-Assets that represent Financial Assets or are subject to financial regulation can be used for
payment or investment purposes and are therefore to be considered Relevant Crypto-Assets.

NFTs are in many instances marketed as collectibles. This function does, however, by itself not
prevent an NFT from being able to be used for payment or investment purposes. It is important to
consider the nature of the NFT and its function in practice and not what terminology or marketing
terms are used. NFTs that can be used for payment or investment purposes in practice are
Relevant Crypto-Assets. Reporting Crypto-Asset Service Providers should therefore consider on a
case-by-case basis whether an NFT cannot be used for payment or investment purposes, taking
into account the commonly accepted usage of the Crypto-Asset. NFTs that are traded on a
marketplace can be used for payment or investment purposes and are therefore to be considered
Relevant Crypto-Assets.

Certain Crypto-Assets can only be exchanged or redeemed within a limited fixed network or
environment for specified goods and services, such as food, book, and restaurant vouchers, as
well airline miles or other loyalty program rewards. In this context, the term “goods and services”
may also include digital goods and services, such as digital music, games, books or other media,
as well as tickets, software applications and online subscriptions. Provided these Crypto-Assets
are characterised by operating in a limited fixed network or environment beyond which the CryptoAssets cannot be transferred or exchanged in a secondary market outside of the closed-loop
system, and cannot be sold or exchanged at a market rate inside or outside of the closed-loop,
such Crypto-Assets would generally not be able to be used for payment or investment purposes.

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Subparagraph A(3) – Central Bank Digital Currency
13.
The term “Central Bank Digital Currencies” means any digital Fiat Currency issued by a Central
Bank. Central Bank Digital Currencies are not considered Relevant Crypto-Assets, given that they are a
digital form of Fiat Currency.

Subparagraph A(4) – Specified Electronic Money Product
14.
Subparagraph A(4) defines the term “Specified Electronic Money Product” as any Crypto-Asset
that is:
a) a digital representation of a single Fiat Currency;
b) issued on receipt of funds for the purpose of making payment transactions;
c) represented by a claim on the issuer denominated in the same Fiat Currency;
d) accepted in payment by a natural or legal person other than the issuer; and
e) by virtue of regulatory requirements to which the issuer is subject, redeemable at any time and at
par value for the same Fiat Currency upon request of the holder of the product.
The term “Specified Electronic Money Product” does not include a product created for the sole purpose of
facilitating the transfer of funds from a customer to another person pursuant to instructions of the
customer. A product is not created for the sole purpose of facilitating the transfer of funds if, in the ordinary
course of business of the transferring Entity, either the funds connected with such product are held longer
than 60 days after receipt of instructions to facilitate the transfer, or, if no instructions are received, the
funds connected with such product are held longer than 60 days after receipt of the funds.
15.
Subparagraph A(4)(a) requires that a Crypto-Asset must be a digital representation of a single Fiat
Currency, in order to be a Specified Electronic Money Product. A Crypto-Asset will be considered to
digitally represent and reflect the value of the Fiat Currency that it is denominated in. Consequently, a
Crypto-Asset that reflects the value of multiple currencies or assets is not a Specified Electronic Money
Product.
16.
Subparagraph A(4)(b) provides that the Crypto-Asset must be issued on receipt of funds. This part
of the definition means that a Specified Electronic Money Products is a prepaid product. The act of “issuing”
is interpreted broadly to include the activity of making available pre-paid stored value and means of
payment in exchange for funds. In addition, this subparagraph provides that the Crypto-Asset must be
issued for the purpose of making payment transactions.
17.
Subparagraph A(4)(c) requires that, in order to be a Specified Electronic Money Product, a CryptoAsset must be represented by a claim on the issuer denominated in the same Fiat Currency. In this respect,
a “claim” includes any monetary claim against the issuer, reflecting the value of the Fiat Currency
represented by the Crypto-Asset issued to the customer.
18.
Under subparagraph A(4)(d), a Crypto-Asset must be accepted by a natural or legal person other
than the issuer in order to be a Specified Electronic Money Product, whereby such third parties must accept
the Crypto-Asset as a means of payment. Consequently, monetary value stored on specific pre-paid
instruments, designed to address precise needs that can be used only in a limited way, because they allow
the electronic money holder to purchase goods or services only in the premises of the electronic money
issuer or within a limited network of service providers under direct commercial agreement with a
professional issuer, or because they can be used only to acquire a limited range of goods or services, are
not considered Specified Electronic Money Products.
19.
Subparagraph A(4)(e) provides that the issuer of the Crypto-Assets must be subject to supervision
to ensure the product is redeemable at any time and at par value for the same Fiat Currency upon request

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of the holder of the Crypto-Asset, in order to be a Specified Electronic Money Product. In this respect, the
“same” Fiat Currency refers to the Fiat Currency that the Crypto-Asset is a digital representation of. When
proceeding to a redemption, it is acknowledged that the issuer can deduct from the redemption amount
any fees or transaction costs.
20.
The definition excludes those products that are created solely to facilitate a funds transfer pursuant
to instructions of a customer and that cannot be used to store value. For example, such products may be
used to enable an employer to transfer the monthly wages to its employees or to enable a migrant worker
to transfer funds to relatives living in another country. A product is not created for the sole purpose of
facilitating the transfer of funds if, in the ordinary course of business of the transferring Entity, either the
funds connected with such product are held longer than 60 days after receipt of instructions to facilitate
the transfer, or, if no instructions are received, the funds connected with such product are held longer than
60 days after receipt of the funds.

Paragraph IV (B) – Reporting Crypto-Asset Service Provider
Subparagraph B(1) – Reporting Crypto-Asset Service Provider
21.
The term “Reporting Crypto-Asset Service Provider” refers to any individual or Entity that, as a
business, provides a service effectuating Exchange Transactions for or on behalf of customers (which for
the purposes of this definition includes users of services of Reporting Crypto-Asset Service Providers),
including by acting as a counterparty, or as an intermediary, to Exchange Transactions, or by making
available a trading platform.
22.
The phrase “as a business” excludes individuals or Entities who carry out a service on a very
infrequent basis for non-commercial reasons. In determining what is meant by “as a business”, reference
can be made to each jurisdiction’s relevant rules.
23.
A service effectuating Exchange Transactions includes any service through which the customer
can receive Relevant Crypto-Assets for Fiat Currencies, or vice versa, or exchange Relevant CryptoAssets for other Relevant Crypto-Assets. The activities of an investment fund investing in Relevant CryptoAssets do not constitute a service effectuating Exchange Transactions since such activities do not permit
the investors in the fund to effectuate Exchange Transactions.
24.
An individual or Entity effectuating Exchange Transactions will only be a Reporting Crypto-Asset
Service Provider if it carries out such activities for or on behalf of customers. This means, for example, that
an individual or Entity that is solely engaged in validating distributed ledger transactions in Relevant CryptoAssets is not a Reporting Crypto-Asset Service Provider, even where such validation is remunerated.
25.
An individual or Entity may effectuate Exchange Transactions for or on behalf of customers by
acting as a counterparty or intermediary to the Exchange Transactions. Examples of individuals or Entities
that may provide services effectuating Exchange Transactions as a counterparty, or as an intermediary,
include:

dealers acting for their own account to buy and sell Relevant Crypto-Assets to customers;

operators of Crypto-Asset ATMs, permitting the exchange of Relevant Crypto-Assets for Fiat
Currencies or other Relevant Crypto-Assets through such ATMs;

Crypto-Asset exchanges that act as a market makers and take a bid-ask spread as a transaction
commission for their services;

brokers in Relevant Crypto-Assets where they act on behalf of clients to complete orders to buy or
sell an interest in Relevant Crypto-Assets; and

individuals or Entities subscribing one or more Relevant Crypto-Assets. While the sole creation
and issuance of a Relevant Crypto-Asset would not be considered a service effectuating Exchange

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Transactions as a counterparty or intermediary, the direct purchase of Relevant Crypto-Assets
from an issuer, to resell and distribute such Relevant Crypto-Assets to customers would be
considered effectuating an Exchange Transaction.
26.
An individual or Entity may also effectuate Exchange Transactions for or on behalf of customers
by making available a trading platform that provides the ability for such customers to effectuate Exchange
Transactions on such platform. A “trading platform” includes any software program or application that
allows users to effectuate (either partially or in their entirety) Exchange Transactions. An individual or Entity
that is making available a platform that solely includes a bulletin board functionality for posting buy, sell or
conversion prices of Relevant Crypto-Assets would not be a Reporting Crypto-Asset Service Provider as
it would not provide a service allowing users to effectuate Exchange Transactions. For the same reason,
an individual or Entity that solely creates or sells software or an application is not a Reporting Crypto-Asset
Service Provider, as long as it is not using such software or application for the provision of a service
effectuating Exchange Transactions for or on behalf of customers.
27.
An individual or Entity will be considered to make available a trading platform to the extent it
exercises control or sufficient influence over the platform, allowing it to comply with the due diligence and
reporting obligations with respect to Exchange Transactions concluded on the platform. Whether an
individual or Entity exercises such control or sufficient influence should be assessed in a manner
consistent with the 2012 FATF Recommendations (as amended in June 2019 with respect to virtual assets
and virtual asset service providers) and related FATF guidance.
28.
An individual or Entity may be a Reporting Crypto-Asset Service Provider by carrying out activities
other than acting as a counterparty, or intermediary, to an Exchange Transaction, or making available a
trading platform, as long as it functionally provides a service, as a business, effectuating Exchange
Transactions for or on behalf of customers. The technology involved in providing such service is irrelevant
to determine whether an individual or Entity is a Reporting Crypto-Asset Service Provider.

Paragraph IV (C) – Relevant Transaction
Subparagraph C(1) – Relevant Transaction
29.
The term “Relevant Transaction” refers to any exchange of Relevant Crypto-Assets and Fiat
Currencies, any exchange between one or more forms of Relevant Crypto-Assets and Transfers of
Relevant Crypto-Assets, including Reportable Retail Payment Transactions. This definition targets those
transactions likely to give rise to taxation events (i.e. capital gains and income taxation).

Subparagraph C(2) – Exchange Transaction
30.
An Exchange Transaction, as defined in subparagraph C(2), refers to any exchange between
Relevant Crypto-Assets and Fiat Currencies as well as any exchange between one or more forms of
Relevant Crypto-Assets. For this purpose, an exchange includes the movement of a Relevant CryptoAsset from one wallet address to another, in consideration of another Relevant Crypto-Asset or Fiat
Currency.

Subparagraph C(3) – Reportable Retail Payment Transaction
31.
Subparagraph C(3) defines the term “Reportable Retail Payment Transaction” as a Transfer of
Relevant Crypto-Assets in consideration of goods or services for a value exceeding USD 50,000. This term
covers situations where a Reporting Crypto-Asset Service Provider transfers Relevant Crypto-Assets used
by a customer to purchase goods or services from a merchant who receives the Relevant Crypto-Assets
as consideration. For example, a Reporting Crypto-Asset Service Provider may carry out Relevant
Transactions between a merchant and its customers to allow payment for goods or services with Relevant
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Crypto-Assets. Where a Reporting Crypto-Asset Service Provider transfers payment made in Relevant
Crypto-Assets from a customer to the merchant for a value above the specified threshold, the Reporting
Crypto-Asset Service Provider should report such Transfer as a Reportable Retail Payment Transaction.
With respect to such Transfers, the Reporting Crypto-Asset Service Provider is required to also treat the
customer of the merchant as the Crypto-Asset User, provided that the Reporting Crypto-Asset Service
Provider is required to verify the identity of such customer pursuant to domestic anti-money laundering
rules, by virtue of the Reportable Retail Payment Transaction.

Subparagraph C(4) –Transfers
32.
The term “Transfer” means a transaction that moves a Relevant Crypto-Asset from or to the
Crypto-Asset address or account of one Crypto-Asset User, other than one maintained by the Reporting
Crypto-Asset Service Provider on behalf of same Crypto-Asset User. A Reporting Crypto-Asset Service
Provider can only classify a Relevant Transaction as a Transfer if, based on the knowledge of the Reporting
Crypto-Asset Service Provider at the time of transaction, the Reporting Crypto-Asset Service Provider
cannot determine that the transaction is an Exchange Transaction. Such knowledge should be determined
by reference to the Reporting Crypto-Asset Service Provider’s actual knowledge based on readily available
information and the degree of expertise and understanding required to conduct the Relevant Transaction.
For example, there may be instances where a Crypto-Asset User acquires or disposes of a Relevant
Crypto-Asset against Fiat Currency, although the Reporting Crypto-Asset Service Provider does not have
actual knowledge of the underlying consideration. This would, for example, be the case if the Reporting
Crypto-Asset Service Provider only conducted the Transfer of the Relevant Crypto-Assets to and from the
Crypto-Asset User’s account, without visibility over the Fiat Currency leg of the transaction. Such
transactions would still be considered Relevant Transactions, but the Reporting Crypto-Asset Service
Provider would need to report such Relevant Transactions as Transfers.
33.
A “Transfer” would also include the instance where a Reporting Crypto-Asset Service Provider
facilitates an individual or Entity receiving a Relevant Crypto-Asset by means of an airdrop when the
Crypto-Asset is newly issued. For instance, in the context of a “hard-fork” a new Relevant Crypto-Asset
diverges from a legacy Relevant Crypto-Asset. As a result, developers of the hard fork typically send an
airdrop of new Relevant Crypto-Assets to all holders of the legacy Relevant Crypto-Asset and such CryptoAsset Users will hold the new Relevant Crypto-Assets in addition to the legacy Relevant Crypto-Assets.
For example, the receipt of an airdrop of a new Relevant Crypto-Asset is considered an inbound Transfer
to the receiving Crypto-Asset User.

Subparagraph C(5) – Fiat Currency
34.
The term Fiat Currency refers to the official currency of a jurisdiction, issued by a jurisdiction or by
a jurisdiction’s designated Central Bank or monetary authority, as represented by physical banknotes or
coins or by money in different digital forms, including bank reserves, and Central Bank Digital Currencies.
The term also includes commercial bank money and electronic money products (including Specified
Electronic Money Products). Accordingly, a stablecoin that qualifies as a Specified Electronic Money
Product is treated as Fiat Currency.

Paragraph IV (D) – Reportable User
Subparagraph D(1) – Reportable User
35.
The term “Reportable User”, as defined in subparagraph D(1), means a Crypto-Asset User that is
a Reportable Person.

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Subparagraph D(2) – Crypto-Asset User
36.
Subparagraph D(2) defines the term “Crypto-Asset User” as a customer of a Reporting CryptoAsset Service Provider for purposes of carrying out Relevant Transactions. Any individual or Entity
identified by the Reporting Crypto Asset Service Provider for purposes of carrying out Relevant
Transactions is treated as a Crypto Asset User, irrespective of whether the Reporting Crypto-Asset Service
Provider is safekeeping the Relevant Crypto-Assets on behalf of the Crypto-Asset User or the legal
characterisation of the relationship between the Reporting Crypto-Asset Service Provider and such
individual or Entity.
37.
An individual or Entity, other than a Financial Institution or Reporting Crypto-Asset Service
Provider, acting as a Crypto-Asset User for the benefit or account of another individual or Entity as agent,
custodian, nominee, signatory, investment advisor, or intermediary, is not treated as a Crypto-Asset User,
and such other individual or Entity is treated as the Crypto-Asset User. For these purposes a Reporting
Crypto-Asset Service Provider may rely on information in its possession (including information collected
pursuant to AML/KYC Procedures), based on which it can reasonably determine whether the individual or
Entity is acting for the benefit or account of another individual or Entity. In confirming whether a CryptoAsset User may be a Reporting Crypto-Asset Service Provider or a Financial Institution, a Reporting
Crypto-Asset Service provider may, for instance, rely on cross-checking the information provided by its
Crypto-Asset User with regulated institutions lists that indicate other Reporting Crypto-Asset Service
Providers or Financial Institutions, where available.
38.

The following examples illustrate the application of this definition:

F holds a power of attorney from U that authorises F to establish a relationship as a Crypto-Asset
User at Reporting Crypto-Asset Service Provider X for carrying out Relevant Transactions on
behalf of U. F has established a relationship at Reporting Crypto-Asset Service Provider X as the
person who can carry out Relevant Transactions. However, because F is not a Financial Institution
or Reporting Crypto-Asset Service Provider and the Reporting Crypto-Asset Service Provider has
information in its AML/KYC files indicating that F acts as an agent for the benefit of U, the Reporting
Crypto-Asset Service Provider must treat U as the Crypto-Asset User;

Reporting Crypto-Asset Service Provider A uses the services of Reporting Crypto-Asset Service
Provider B to effectuate Relevant Transactions on the exchange platform maintained by B.
Therefore, A is a Crypto-Asset User for B, and B will report the Relevant Transactions effectuated
by A. Because A is a Reporting Crypto-Asset Service Provider, it is immaterial whether A
effectuates such Relevant Transactions in its own name or as an agent, custodian, nominee,
signatory, investment advisor or intermediary.

39.
A Reporting Crypto-Asset Service Provider may conduct Relevant Transactions that allow a
merchant to offer its customers payment in the form of Relevant Crypto-Assets, in consideration of a
purchase of goods or services. In those instances, and provided that the value of the transaction exceeds
USD 50,000, the transaction is considered a Relevant Transaction by virtue of being a Reportable Retail
Payment Transaction. See Commentary to subparagraph C(3). For Reportable Retail Payment
Transactions, the Reporting Crypto-Asset Service Provider must treat the customer of the merchant as the
Crypto-Asset User and the transaction should be reported as a Reportable Retail Payment Transaction
pursuant to subparagraph A(3)(f) of Section II, provided that the Reporting Crypto-Asset Service Provider
is required to verify the identity of such customer pursuant to domestic anti-money laundering rules, by
virtue of the Reportable Retail Payment Transaction. The requirement to verify the identity of the customer
means a requirement pursuant to domestic anti-money laundering rules that requires the Reporting CryptoAsset Service Provider to verify the identity using reliable, independent source documents, data or
information.

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Subparagraphs D(3) through (6) – Preexisting, Individual and Entity Crypto-Asset Users
40.
Subparagraphs D(3) through (6) contain the various categories of Crypto-Asset Users classified
by reference to date of the establishment of the relationship or type of Crypto-Asset User: “Individual
Crypto-Asset User”, “Preexisting Individual Crypto-Asset User”, “Entity Crypto-Asset User”, “Preexisting
Entity Crypto-Asset User”.
41.
A Crypto-Asset User is classified, firstly, depending on whether it is an individual or an Entity and,
secondly, depending on the date it established a relationship as such with a Reporting Crypto-Asset
Service Provider. Thus, a Crypto-Asset User can be either a “Preexisting Individual Crypto-Asset User”, a
“Preexisting Entity Crypto-Asset User”, an “Individual Crypto-Asset User” and/or an “Entity Crypto-Asset
User”.
42.
As such, Preexisting Individual Crypto-Asset Users and Preexisting Entity Crypto-Asset Users are
Crypto-Asset Users that have established a relationship as a customer of the Reporting Crypto-Asset
Service Provider as of [xx/xx/xxxx] and are therefore a subset of Individual Crypto-Asset Users and Entity
Crypto-Asset Users, respectively.

Subparagraph D(7) – Reportable Person
43.
Subparagraph D(7) defines the term “Reportable Person” as a Reportable Jurisdiction Person
other than an Excluded Person.

Subparagraph D(8) – Reportable Jurisdiction Person
44.
As a general rule, an individual or Entity is a “Reportable Jurisdiction Person” if it is resident in a
Reportable Jurisdiction under the tax laws of such jurisdiction.
45.
Domestic laws differ in the treatment of partnerships (including limited liability partnerships). Some
jurisdictions treat partnerships as taxable units (sometimes even as companies) whereas other jurisdictions
adopt what may be referred to as the fiscally transparent approach, under which the partnership is
disregarded for tax purposes. Where a partnership is treated as a company or taxed in the same way, it
would generally be considered to be a resident of the Reportable Jurisdiction that taxes the partnership.
Where, however, a partnership is treated as fiscally transparent in a Reportable Jurisdiction, the
partnership is not “liable to tax” in that jurisdiction, and so cannot be a resident thereof.
46.
An Entity such as a partnership, limited liability partnership or similar legal arrangement that has
no residence for tax purposes shall be treated as resident in the jurisdiction in which its place of effective
management is situated. For these purposes, a legal person or a legal arrangement is considered “similar”
to a partnership and a limited liability partnership where it is not treated as a taxable unit in a Reportable
Jurisdiction under the tax laws of such jurisdiction.
47.
The “place of effective management” is the place where key management and commercial
decisions that are necessary for the conduct of the Entity’s business as a whole are in substance made.
All relevant facts and circumstances must be examined to determine the place of effective management.
48.
The term “Reportable Jurisdiction Person” also includes an estate of a decedent that was a
resident of a Reportable Jurisdiction. In determining what is meant by “estate”, reference must be made to
each jurisdiction’s particular rules on the transfer or inheritance of rights and obligations in the event of
death (e.g. the rules on universal succession).

Subparagraph D(9) – Reportable Jurisdiction
49.
Subparagraph D(9) defines “Reportable Jurisdiction” as any jurisdiction (a) with which an
agreement or arrangement is in effect pursuant to which [Jurisdiction] is obligated to provide the information
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specified in Section II with respect to Reportable Persons resident in such jurisdiction, and (b) which is
identified as such in a list published by [Jurisdiction]. Subparagraph D(9) therefore requires that the
jurisdiction is identified in a published list as a Reportable Jurisdiction. Each jurisdiction must make such
a list publicly available, and update it as appropriate (e.g. every time the jurisdiction signs an agreement
with respect to exchanging information under these rules, or such an agreement enters into force).

Subparagraph D(10) – Controlling Persons
50.
Subparagraph D(10) sets forth the definition of the term “Controlling Persons”. This term
corresponds to the term “beneficial owner” as described in Recommendation 10 and the Interpretative
Note on Recommendation 10 of the FATF Recommendations (as adopted in February 2012), and must be
interpreted in a manner consistent with such Recommendations, with the aim of protecting the international
financial system from misuse including with respect to tax crimes.
51.
For an Entity that is a legal person, the term “Controlling Persons” means the natural person(s)
who exercises control over the Entity. “Control” over an Entity is generally exercised by the natural
person(s) who ultimately has a controlling ownership interest in the Entity. A “controlling ownership interest”
depends on the ownership structure of the legal person and is usually identified on the basis of a threshold
applying a risk-based approach (e.g. any person(s) owning more than a certain percentage of the legal
person, such as 25%). Where no natural person(s) exercises control through ownership interests, the
Controlling Person(s) of the Entity will be the natural person(s) who exercises control of the Entity through
other means. Where no natural person(s) is identified as exercising control of the Entity, the Controlling
Person(s) of the Entity will be the natural person(s) who holds the position of senior managing official.
52.
In the case of a trust, the term “Controlling Persons” means the settlor(s), the trustee(s), the
protector(s) (if any), the beneficiary(ies) or class(es) of beneficiaries, and any other natural person(s)
exercising ultimate effective control over the trust. The settlor(s), the trustee(s), the protector(s) (if any),
and the beneficiary(ies) or class(es) of beneficiaries, must always be treated as Controlling Persons of a
trust, regardless of whether or not any of them exercises control over the trust. It is for this reason that the
second sentence of subparagraph D(10) supplements the first sentence of such subparagraph. In addition,
any other natural person(s) exercising ultimate effective control over the trust (including through a chain of
control or ownership) must also be treated as a Controlling Person of the trust. With a view to establishing
the source of funds in the account(s) held by the trust, where the settlor(s) of a trust is an Entity, Reporting
Crypto-Asset Service Providers must also identify the Controlling Person(s) of the settlor(s) and report
them as Controlling Person(s) of the trust. For beneficiary(ies) of trusts that are designated by
characteristics or by class, Reporting Crypto-Asset Service Providers should obtain sufficient information
concerning the beneficiary(ies) to satisfy the Reporting Crypto-Asset Service Provider that it will be able to
establish the identity of the beneficiary(ies) at the time of the pay-out or when the beneficiary(ies) intends
to exercise vested rights. Therefore, that occasion will constitute a change in circumstances and will trigger
the relevant procedures.
53.
In the case of a legal arrangement other than a trust, the term “Controlling Persons” means
persons in equivalent or similar positions as those that are Controlling Persons of a trust. Thus, taking into
account the different forms and structures of legal arrangements, Reporting Crypto-Asset Service
Providers should identify and report persons in equivalent or similar positions, as those required to be
identified and reported for trusts.
54.
In relation to legal persons that are functionally similar to trusts (e.g. foundations), Reporting
Crypto-Asset Service Providers should identify Controlling Persons through similar customer due diligence
procedures as those required for trusts, with a view to achieving appropriate levels of reporting.

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Subparagraph D(11) – Active Entity
55.

An Entity is an Active Entity, provided that it meets any of the criteria listed in subparagraph D(11).

56.
Subparagraph D(11)(a) describes the criterion to qualify for the Active Entity status by reason of
income and assets as follows: less than 50% of the Entity’s gross income for the preceding calendar year
or other appropriate reporting period is passive income and less than 50% of the assets held by the Entity
during the preceding calendar year or other appropriate reporting period are assets that produce or are
held for the production of passive income.
57.
In determining what is meant by “passive income”, reference must be made to each jurisdiction’s
particular rules. Passive income would generally be considered to include the portion of gross income that
consists of:
a) dividends;
b) interest;
c) income equivalent to interest or dividends;
d) rents and royalties, other than rents and royalties derived in the active conduct of a business
conducted, at least in part, by employees of the Entity;
e) annuities;
f)

income derived from Relevant Crypto-Assets;

g) the excess of gains over losses from the sale or exchange of Relevant Crypto-Assets or
Financial Assets;
h) the excess of gains over losses from transactions (including futures, forwards, options, and
similar transactions) in any Relevant Crypto-Assets or Financial Assets;
i)

the excess of foreign currency gains over foreign currency losses;

j)

net income from swaps; or

k) amounts received under cash value insurance contracts.
Notwithstanding the foregoing, passive income will not include, in the case of an Entity that regularly acts
as a dealer in Relevant Crypto-Assets or Financial Assets, any income from any transaction entered into
in the ordinary course of such dealer’s business as such a dealer. Further, income received on assets to
invest the capital of an insurance business can be treated as active income.
58.
Subparagraph D(11)(b) describes the criterion to qualify for the Active Entity status for “holding
Entities that are members of a nonfinancial group” as follows: substantially all of the activities of the Entity
consist of holding (in whole or in part) the outstanding stock of, or providing financing and services to, one
or more subsidiaries that engage in trades or businesses other than the business of a Financial Institution,
except that an Entity does not qualify for this status if the Entity functions (or holds itself out) as an
investment fund, such as a private equity fund, venture capital fund, leveraged buyout fund, or any
investment vehicle whose purpose is to acquire or fund companies and then hold interests in those
companies as capital assets for investment purposes.
59.
With respect to the activities mentioned in subparagraph D(11)(b), “substantially all” means 80%
or more. If, however, the Entity’s holding or group finance activities constitute less than 80% of its activities
but the Entity receives also active income (i.e. income that is not passive income) otherwise, it qualifies for
the Active Entity status, provided that the total sum of activities meets the “substantially all test”. For
purposes of determining whether the activities other than holding and group finance activities of the Entity
qualify it as an Active Entity, the test of subparagraph D(11)(a) can be applied to such other activities. For
example, if a holding company has holding or finance and service activities to one or more subsidiaries for
60% and also functions for 40% as a distribution centre for the goods produced by the group it belongs to
and the income of its distribution centre activities is active according to subparagraph D(11)(a), it is an
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Active Entity, irrespective of the fact that less than 80% of its activities consist of holding the outstanding
stock of, or providing finance and services to, one or more subsidiaries. The term “substantially all” covers
also a combination of holding stock of and providing finance and services to one or more subsidiaries. The
term “subsidiary” means any entity whose outstanding stock is either directly or indirectly held (in whole or
in part) by the Entity.
60.
One of the requirements listed in subparagraph D(11)(f) for “non-profit Entities” to qualify for the
Active Entity status is that the applicable laws of the Entity’s jurisdiction of residence or the Entity’s
formation documents do not permit any income or assets of the Entity to be distributed to, or applied for
the benefit of, a private person or non-charitable Entity other than pursuant to the conduct of the Entity’s
charitable activities, or as payment of reasonable compensation for services rendered, or as payment
representing the fair market value of property which the Entity has purchased. In addition, the income or
assets of the Entity could be distributed to, or applied for the benefit of, a private person or noncharitable
Entity as payment of reasonable compensation for the use of property.

Paragraph IV (E) – Excluded Person
Subparagraph E(1) – Excluded Person
61.
Subparagraph E(1) defines the term “Excluded Person” as (a) an Entity the stock of which is
regularly traded on one or more established securities markets; (b) any Entity that is a Related Entity of an
Entity described in clause (a); (c) a Governmental Entity; (d) an International Organisation; (e) a Central
Bank; or (f) a Financial Institution other than an Investment Entity described in Section IV E(5)(b). Those
Entities that are covered by the term “Excluded Person” are not subject to reporting under the Crypto-Asset
Reporting Framework, in light of the limited tax compliance risks these Entities represent and/or the other
tax reporting obligations certain of these Entities are subject to, including pursuant to the Common
Reporting Standard. As such, the scope of Excluded Persons is, wherever adequate, aligned to the
exclusions from reporting foreseen in the Common Reporting Standard.

Subparagraphs E(2)-(4) – Financial Institution, Custodial Institution, and Depository
Institution
62.
The terms “Financial Institution”, “Custodial Institution” and “Depository Institution” in
subparagraphs E(2), (3) and (4), respectively, should be interpreted consistently with the Commentary of
the Common Reporting Standard, as amended.

Subparagraph E(5) – Investment Entity
63.
The term “Investment Entity” includes two types of Entities: Entities that primarily conduct, as a
business, investment activities or operations on behalf of other persons, and Entities that are managed by
those Entities or other Financial Institutions.
64.
Subparagraph E(5)(a) defines the first type of “Investment Entity” as any Entity that primarily
conducts as a business one or more of the following activities or operations for or on behalf of a customer:
a) trading in money market instruments (cheques, bills, certificates of deposit, derivatives,
etc.); foreign exchange; exchange, interest rate and index instruments; transferable
securities; or commodity futures trading;
b) individual and collective portfolio management; or
c) otherwise investing, administering, or managing Financial Assets, or money (including
Central Bank Digital Currencies), or Relevant Crypto-Assets on behalf of other persons.

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65.
Such activities or operations do not include rendering non-binding investment advice to a
customer. For purposes of subparagraph E(5)(a), the term “customer” includes the Equity Interest holder
of a collective investment vehicle, whereby the collective investment vehicle is considered to conduct its
activities or operations as a business. For purposes of subparagraph E(5)(a)(iii), the term “investing,
administering, or trading” does not comprise the provision of services effectuating Exchange Transactions
for or on behalf of customers.
66.
Subparagraph E(5)(b) defines the second type of “Investment Entity” as any Entity the gross
income of which is primarily attributable to investing, reinvesting, or trading in Financial Assets or Relevant
Crypto-Assets, if the Entity is managed by another Entity that is a Depository Institution, a Custodial
Institution, a Specified Insurance Company, or an Investment Entity described in subparagraph E(5)(a).
An Entity is ‘managed by’ another Entity if the managing Entity performs, either directly or through another
service provider, any of the activities or operations described in subparagraph E(5)(a) on behalf of the
managed Entity. However, an Entity does not manage another Entity if it does not have discretionary
authority to manage the Entity’s assets (in whole or part). Where an Entity is managed by a mix of Financial
Institutions and individuals or Entities other than Financial Institutions, the Entity is considered to be
managed by another Entity that is a Depository Institution, a Custodial Institution, a Specified Insurance
Company, or an Investment Entity described in subparagraph E(5)(a), if any of the managing Entities is
such another Entity. For example, a private trust company that acts as a registered office or registered
agent of a trust or performs administrative services unrelated to the Financial Assets, Relevant CryptoAssets or money of the trust, does not conduct the activities and operations described in subparagraph
E(5)(a) on behalf of the trust and thus the trust is not “managed by” the private trust company within the
meaning of subparagraph E(5)(b). Also, an Entity that invests all or a portion of its assets in a mutual fund,
exchange traded fund, or similar vehicle will not be considered “managed by” the mutual fund, exchange
traded fund, or similar vehicle. In both of these examples, a further determination needs to be made as to
whether the Entity is managed by another Entity for the purpose of ascertaining whether the first-mentioned
Entity falls within the definition of Investment Entity, as set out in subparagraph E(5)(b).
67.
An Entity is treated as primarily conducting as a business one or more of the activities described
in subparagraph E(5)(a), or an Entity’s gross income is primarily attributable to investing, reinvesting, or
trading in Financial Assets or Relevant Crypto-Assets for purposes of subparagraph E(5)(b), if the Entity’s
gross income attributable to the relevant activities equals or exceeds 50 per cent of the Entity’s gross
income during the shorter of:

the three-year period ending on 31 December of the year preceding the year in which the
determination is made; or

the period during which the Entity has been in existence.

68.
For the purposes of the gross income test, all remuneration for the relevant activities of an Entity
is to be taken into account, independent of whether that remuneration is paid directly to the Entity to which
the test is applied or to another Entity.
69.
The term “Investment Entity”, as defined in subparagraph E(5), does not include an Entity that is
an Active Entity because it meets any of the criteria in subparagraphs D(11)(b) through (e).
70.
An Entity would generally be considered an Investment Entity if it functions or holds itself out as a
collective investment vehicle, mutual fund, exchange traded fund, private equity fund, hedge fund, venture
capital fund, leveraged buy-out fund or any similar investment vehicle established with an investment
strategy of investing, reinvesting, or trading in Financial Assets or Relevant Crypto-Assets. An Entity that
primarily conducts as a business investing, administering, or managing non-debt, direct interests in real
property on behalf of other persons, such as a type of real estate investment trust, will not be an Investment
Entity.

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71.
Subparagraph E(5) also states that the definition of the term “Investment Entity” shall be
interpreted in a manner consistent with similar language set forth in the definition of “financial institution”
in the Financial Action Task Force Recommendations.

Subparagraphs E(6)-(15) – “Specified Insurance Company”, “Governmental Entity”,
“International Organisation”, “Central Bank”, “Financial Asset”, “Equity Interest”, “Insurance
Contract”, “Annuity Contract”, “Cash Value Insurance Contract” and “Cash Value”
72.
The terms “Specified Insurance Company”, “Governmental Entity”, “International Organisation”,
“Central Bank”, “Financial Asset”, “Equity Interest”, “Insurance Contract”, “Annuity Contract”, “Cash Value
Insurance Contract”, and “Cash Value” in subparagraphs E(6) through (15) should be interpreted
consistently with the Commentary of the Common Reporting Standard, as amended.

Paragraph IV (F) – Miscellaneous
Subparagraph F(1) – Partner Jurisdiction
73.
The term “Partner Jurisdiction” means any jurisdiction that has put in place equivalent legal
requirements and that is included in a public list issued by [Jurisdiction].

Subparagraph F(2) – AML/KYC Procedures
74.
The term “AML/KYC Procedures”, as defined in subparagraph F(2), means the customer due
diligence procedures of a Reporting Crypto-Asset Service Provider pursuant to the anti-money laundering
or similar requirements to which such Reporting Crypto-Asset Service Provider is subject (e.g. know your
customer provisions). These procedures include identifying and verifying the identity of the customer
(including the beneficial owners of the customer), understanding the nature and purpose of the
transactions, and on-going monitoring.

Subparagraph F(3) and (4) – Entity and Related Entity
75.
Subparagraph F(3) defines the term “Entity” as a legal person or a legal arrangement. This term
is intended to cover any person other than an individual (i.e. a natural person), in addition to any legal
arrangement. Thus, e.g. a corporation, partnership, trust, fideicomiso, foundation (fondation, Stiftung),
company, co-operative, association, or asociación en participación, falls within the meaning of the term
“Entity”.
76.
An Entity is a “Related Entity” of another Entity, as defined in subparagraph F(4), if either Entity
controls the other Entity, or the two Entities are under common control. For this purpose control includes
direct or indirect ownership of more than 50% of the vote and value in an Entity. In this respect, Entities
are considered Related Entities if these Entities are connected through one or more chains of ownership
by a common parent Entity and if the common parent Entity directly owns more than 50% of the stock or
other equity interest in at least one of the other Entities. A chain of ownership is to be understood as the
ownership by one or more Entities of more than 50 percent of the total voting power of the stock of an
Entity and more than 50 percent of the total value of the stock of an Entity, as illustrated by the following
example:
Entity A owns 51% of the total voting power and 51% of the total value of the stock of Entity B. Entity B in
its turn owns 51% of the total voting power and 51% of the total value of the stock of Entity C. Entities A
and C are considered “Related Entities” pursuant to subparagraph F(4) of Section IV because Entity A has
a direct ownership of more than 50 percent of the total voting power of the stock and more than 50 percent
of total value of the stock of Entity B, and because Entity B has a direct ownership of more than 50 percent
of the total voting power of the stock and more than 50 percent of total value of the stock of Entity C.
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Entities A and C are, hence, connected through chains of ownership. Notwithstanding the fact that Entity
A proportionally only owns 26 percent of the total value of the stock and voting rights of Entity C, Entity A
and Entity C are Related Entities.

Subparagraph F(5) – TIN
77.
According to subparagraph F(5), the term “TIN” means Taxpayer Identification Number (or
functional equivalent in the absence of a Taxpayer Identification Number). A Taxpayer Identification
Number is a unique combination of letters or numbers, however described, assigned by a jurisdiction to an
individual or an Entity and used to identify the individual or Entity for purposes of administering the tax laws
of such jurisdiction.
78.
TINs are also useful for identifying taxpayers who invest in other jurisdictions. TIN specifications
(i.e. structure, syntax, etc.) are set by each jurisdiction’s tax administrations. Some jurisdictions even have
a different TIN structure for different taxes or different categories of taxpayers (e.g. residents and nonresidents).
79.
While many jurisdictions utilise a TIN for personal or corporate taxation purposes, some
jurisdictions do not issue a TIN. However, these jurisdictions often utilise some other high integrity number
with an equivalent level of identification (a “functional equivalent”). Examples of that type of number include,
for individuals, a social security/insurance number, citizen/personal identification/service code/number,
and resident registration number; and for Entities, a business/company registration code/number.
80.
In addition, some jurisdictions may also offer government verification services for the purpose of
ascertaining the identity and tax residence of their taxpayers. Such government verification services are
electronic processes made available by the jurisdiction to entities or individuals with third party reporting
obligations (such as Reporting Crypto-Asset Service Providers) for the purposes of ascertaining the identity
and tax residence of reportable persons (such as Crypto-Asset Users or their Controlling Persons). Where
a tax administration opts for identification of Crypto-Asset Users or Controlling Persons based on an
Application Programming Interface (API) solution, it would normally make an API portal accessible to
Reporting Crypto-Asset Service Providers. Subsequently, if the Crypto-Asset User’s or Controlling
Person’s self-certification indicates residence in that jurisdiction, the Reporting Crypto-Asset Service
Provider can direct the Crypto-Asset User or Controlling Person to the API portal which would allow the
jurisdiction to identify the Crypto-Asset User or Controlling Person based on its domestic taxpayer
identification requirements (for example a government ID or username). Upon successful identification of
the Crypto-Asset User or Controlling Person as a taxpayer of that jurisdiction, the jurisdiction, via the API
portal, would provide the Reporting Crypto-Asset Service Provider with a unique reference number or code
allowing the jurisdiction to match the Crypto-Asset User or Controlling Person to a taxpayer within its
database. Where the Reporting Crypto-Asset Service Provider subsequently reports information
concerning that Crypto-Asset User or Controlling Person, it would include the unique reference number or
code to allow the jurisdiction receiving the information to enable matching of the Crypto-Asset User or
Controlling Person. In this respect, a unique reference number, code or other confirmation received by a
Reporting Crypto-Asset Service Provider in respect of a Crypto-Asset User or a Controlling Person via a
government verification service is also a functional equivalent to a TIN.
81.
Jurisdictions are expected to provide Reporting Crypto-Asset Service Providers with information
with respect to the issuance, collection and, to the extent possible and practical, the structure and other
specifications of taxpayer identification numbers and their functional equivalents. The OECD will
endeavour to facilitate its dissemination. Such information will facilitate the collection of accurate TINs by
Reporting Crypto-Asset Service Providers.

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Subparagraph F(6) – Branch
82.
The term “Branch” means a unit, business or office of a Reporting Crypto-Asset Service Provider
that is treated as a branch under the regulatory regime of a jurisdiction or that is otherwise regulated under
the laws of a jurisdiction as separate from other offices, units, or branches of the Reporting Crypto-Asset
Service Provider. All units, businesses, or offices of a Reporting Crypto-Asset Service Provider in a single
jurisdiction shall be treated as a single branch.

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Part II – Amendments to the
Common Reporting
Standard

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Introduction
1.
The CRS was designed to promote tax transparency with respect to financial accounts held
abroad, and requires the collection and automatic exchange of information of the identity of account
holders, as well as the balance and the income paid or credited to the accounts. Since the CRS was
adopted in 2014, over seven years have passed, in which over 100 jurisdictions have implemented the
CRS.
2.
As such, there is now solid experience with the CRS both by governments and Financial
Institutions. The OECD has therefore conducted the first comprehensive review of the CRS, with the aim
of improving the operation of the CRS. To that end, the OECD has taken on board input from jurisdictions
that have implemented the CRS, as well as from Reporting Financial Institutions reporting under the CRS,
in order to determine areas meriting a review. This has resulted in amendments in two key areas.
3.
Firstly, new digital financial products are included in the scope of the CRS, as they may constitute
a credible alternative to holding money or Financial Assets in an account that is currently subject to CRS
reporting. In this regard, the CRS now covers Specified Electronic Money Products and Central Bank
Digital Currencies. In light of the development of the CARF, changes are also made to the definitions of
Financial Asset and Investment Entity, to ensure that derivatives that reference Crypto-Assets and are held
in Custodial Accounts and Investment Entities investing in Crypto-Assets are covered by the CRS. The
CRS now also contains provisions to ensure an efficient interaction between the CRS and the CARF, in
particular to limit instances of duplicative reporting, while maintaining a maximum amount of operational
flexibility of Reporting Financial Institutions that are also subject to obligations under the CARF.
4.
Secondly, the amendments enhance the reporting outcomes under the CRS, including through the
introduction of more detailed reporting requirements, the strengthening of the due diligence procedures,
the introduction of a new, optional Non-Reporting Financial Institution category for Investment Entities that
are genuine non-profit organisations and the creation of a new Excluded Account category for capital
contribution accounts. In addition, further details have been included in the Commentary to the CRS in a
number of locations to increase consistency in the application of the CRS and to incorporate previously
released Frequently-Asked Questions and interpretative guidance.

Covering new digital financial products
Digital money products
5.
Certain e-money products, as well as Central Bank Digital Currencies (CBDCs) representing a
digital fiat currency issued by a Central Bank, can be considered functionally similar to a traditional bank
account from the perspective of customers and may therefore entail tax compliance concerns similar to
those associated with bank accounts currently covered by the CRS. To ensure a level-playing field between
digital money products and traditional bank accounts and to ensure consistent reporting outcomes, the
following amendments to the CRS have been made:

the term Specified Electronic Money Product is introduced, covering digital representations of a
single fiat currency that are issued on receipt of funds for the purpose of making payment

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transactions, that are represented by a claim on the issuer denominated in the same fiat currency,
that are accepted by a natural or legal person other than the issuer; and that, by virtue of regulatory
requirements to which the issuer is subject, are redeemable at par for the same fiat currency upon
request of the holder of the product. A carve-out is included for products that are created solely to
facilitate a funds transfer pursuant to instructions of a customer and that cannot be used to store
value;

the term Central Bank Digital Currency (“CBDC”) is introduced, covering any official currency of a
jurisdiction, issued in digital form by a Central Bank;

the definition of Depository Institution and the related Commentary are amended to include those
e-money providers that are not already Depository Institutions under the current definition and that
are relevant from a CRS perspective by virtue of holding Specified Electronic Money Products or
CBDCs;

the definition of Depository Account is amended to include accounts that represent the Specified
Electronic Money Products and CBDCs held for customers;

a new category of Excluded Account is added to bring out of scope low-risk digital money products
that represent a low-risk in light of the limited monetary value stored, namely Specified Electronic
Money Products whose rolling average 90-day end-of-day account balance or value does not
exceed USD 10,000 in any consecutive 90 day period; and

additional wording is included on the definition of Non-Reporting Financial Institution to clarify that
a Central Bank is not considered a Non-Reporting Financial Institution when it holds CBDCs on
behalf of Non-Financial Entities or individuals.

Coverage of derivatives referencing Crypto-Assets and Investment Entities investing in
Crypto-Assets
6.
In order to ensure consistency between derivatives referencing Crypto-Assets and derivatives
referencing (other) Financial Assets, the latter of which are already covered under the CRS, derivative
contracts referencing Crypto-Assets are included in the definition of Financial Assets, thereby allowing
Reporting Financial Institutions to apply the same due diligence and reporting procedures to derivatives
referencing different types of assets.
7.
Beyond the direct transacting in and holding of Crypto-Assets, investors can alternatively invest in
Crypto-Assets through funds and other wealth management vehicles, whose purpose is to acquire and
hold Relevant Crypto-Assets for investment purposes. By doing so, investors can obtain exposure to price
fluctuations of the fund’s underlying Crypto-Assets, without directly owning any Crypto-Assets.
8.
Interests in funds and wealth management vehicles are already subject to reporting under the
CRS, either as Equity or Debt Interests in Investment Entities or as Financial Assets held in Custodial
Accounts. However, the definition of Investment Entity does not currently contain Crypto-Assets as a
category of eligible investments that would bring the Entity in scope of the CRS, as the definition presently
only encompasses Financial Assets and money. The definition of Investment Entity is therefore expanded
to include the activity of investing in Crypto-Assets.

Further amendments to improve CRS reporting
9.
As set out above, a set of further amendments are made to the CRS and Commentary with a view
to improving the quality and usability of CRS reporting. Each of the changes is briefly outlined below.

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Expansion of the reporting requirements in respect of Account Holders, Controlling
Persons and the Financial Accounts they own (Section I – Reporting requirements)
10.
When the CRS was designed, the reporting requirements set out in Section I were primarily
focused on the transmission of key identification items in respect of Account Holders and Controlling
Persons, as well as on information related to the income realised and balances present on Financial
Accounts.
11.
At the same time, Reporting Financial Institutions may have knowledge of a set of other facts and
circumstances surrounding the Account Holders, Controlling Persons and the Financial Accounts they
own, which, if reported, allow tax administrations to better contextualise the information they receive under
the CRS and to facilitate the use of the data for tax compliance purposes. The reporting requirements
under the CRS are therefore expanded to cover the following:

the role of Controlling Persons in relation to the Entity Account Holder and the role(s) of Equity
Interest Holders in an Investment Entity – this ensures that tax administrations have visibility on
the role(s) a Controlling Person/Equity Interest Holder plays with respect to the Entity, allowing a
distinction between those Controlling Persons/Equity Interest Holders that have an interest through
ownership, control or as beneficiaries, as opposed to those that have a managerial role (e.g. senior
management officials, protectors, trustees);

whether the account is a Preexisting Account or a New Account and whether a valid selfcertification has been obtained – this information gives tax administrations visibility with respect to
the due diligence procedures applied, and therewith gives insights into the reliability of the
information;

whether the account is a joint account, as well as the number of joint Account Holders – this
information permits tax administrations to take the fact into account that the income and balance
on joint accounts may not be attributable in full to each Account Holder, but would rather need to
be apportioned, as appropriate, between the Account Holders; and

the type of Financial Account – this distinction between Depository Accounts, Custodial Accounts,
Equity and debt Interests and Cash Value Insurance Contracts allows tax administrations to better
understand the financial investments held by their taxpayers.

Reliance on AML/KYC Procedures for determining Controlling Persons (Section VI – Due
diligence requirements)
12.
The conditions under which a Reporting Financial Institution can rely on AML/KYC Procedures to
determine the Controlling Persons of a New Entity Account Holder have been moved into the text of the
CRS itself. In particular, it is specified for New Entity Accounts that AML/KYC Procedures must be in line
with 2012 FATF Recommendations. In addition, it is clarified that, if AML/KYC Procedures are not
consistent with 2012 FATF Recommendations, the Reporting Financial Institution must apply substantially
similar procedures.

Exceptional due diligence procedure for cases where a valid self-certification was not
obtained, in order to ensure reporting with respect to such accounts (Sections II – VII –
Due diligence requirements)
13.
As the CRS requires Reporting Financial Institutions to obtain and validate self-certifications for all
New Accounts, the CRS does not foresee any fall-back due diligence procedure to be applied in
exceptional cases where a Reporting Financial Institution did not comply with the requirement to obtain a
valid self-certification.

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14.
Reporting Financial Institutions are therefore required to temporarily determine the residence of
the Account Holders and/or Controlling Persons on the basis of the due diligence procedures for
Preexisting Accounts. It should be noted that this is not a standard procedure and is not an alternative to
the requirement to obtain a valid self-certification.

Qualification of certain capital contribution accounts as Excluded Accounts (Section
VIII(C)(17)(e) – Definition of Excluded Account)
15.
So-called capital contribution accounts, the purpose of which is to block funds for a limited period
of time in view of the incorporation of a new company or a pending capital increase, are now considered
Excluded Accounts, provided that adequate safeguards are in place to avoid the misuse of such accounts.
This is the case where such transactions are subject to regulation and, as a matter of law, are required to
take place via a dedicated bank account, whereby the underlying funds are frozen until the capital
contribution has taken place and, in the case of an incorporation, when the company has been legally
established and registered in the jurisdiction’s commercial register. As soon as the company is legally
established and registered, the capital contribution account is then transformed into a regular Depository
Account or the capital amount is transferred to a Depository Account and the initial capital contribution
account is closed. On the contrary, if the company is not established, the contributions would be refunded
to the subscriber(s).
16.
In order to ensure that such accounts are only used for the completion of an imminent capital
contribution transaction, such an account is treated as an Excluded Account only where the use of such
accounts is prescribed by law and for a maximum period of 12 months.

Non-Reporting Financial Institution category for genuine charities
17.
While most Active NFEs are not treated as Investment Entities even if they meet the Investment
Entity definition, this carve-out does not apply to Entities that are Active NFEs by virtue of being a nonprofit Entity as defined in subparagraph D(9)(h) of Section VIII. Representatives from the philanthropy
sector have highlighted that this can lead to highly undesirable outcomes, requiring genuine public benefit
foundations to apply due diligence procedures in respect of all beneficiaries of grant payments and report
on grant payments to non-resident beneficiaries, such as for instance disadvantaged students receiving
scholarships. At the same time, concerns have been expressed by governments that simply extending the
carve out from the Investment Entity definition to all non-profit Entities described in Subparagraph D(9)(h)
of Section VIII could give rise to situations where Investment Entities would circumvent their reporting
obligations under the CRS by improperly claiming the status of non-profit Entities.
18.
In light of these considerations, the CRS now contains an optional new Non-Reporting Financial
Institution category for genuine Non-Profit Entities that (i) reflects the substantive conditions of Active NFEs
pursuant to subparagraph D(9)(h) of Section VIII and (ii) makes the carve-out subject to adequate
verification procedures by the tax administration of the jurisdiction in which the Entity is otherwise subject
to reporting as an Investment Entity.
19.
The commentary language to Paragraph B of Section VIII now includes language outlining these
conditions for excluding Qualified Non-Profit Entities from reporting obligations under the CRS. The
commentary also describes the confirmation a tax administration or other governmental authority would
need to obtain before treating an Entity as a Qualified Non-Profit Entity.

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Broadening of the scope of Depository Institution (Commentary to Depository Institution
definition)
20.
The Commentary on the term Depository Institution has been amended to expand the scope to
include entities that are merely licensed to engage in certain banking activities but are not actually so
engaged.

Notions of customer and business in the context of Investment Entities (Commentary to
Investment Entity definition)
21.
With respect to Investment Entities pursuant to subparagraph a of the definition, doubts have
arisen as to the interpretation of the term “customer”, as well as the condition that the activities listed in
subparagraph must be conducted “as a business”. This question is in particular relevant with respect to
funds.
22.
The scope of the definition is clarified via the terms “customer” and “business”, by explicitly
confirming in Commentary that investors of funds can be considered “customers” and the funds themselves
can be considered to conduct activities “as a business”. This is consistent with the interpretation of the
definition of Financial Institution in the FATF Recommendations, on which subparagraph (a) is based.

Reporting in respect of dual-resident account-holders (paragraphs 4 and 7 to the
Commentary on Section IV and VI, respectively)
23.
The Commentary to the CRS acknowledges that an Entity or individual Account Holder may be
resident for tax purposes in two or more jurisdictions. The Commentary also specifies that, in the context
of the self-certification process, such dual-residents may rely on the tie-breaker rules contained in
applicable tax conventions to determine their residence for tax purposes.
24.
This may result in prematurely treating the Account Holder as tax resident in a single jurisdiction
for the purposes of the CRS, leading to the CRS information with respect to the Account Holder not being
reported to the other jurisdiction(s).
25.
The Commentary is therefore revised in order to ensure that, in tiebreaker scenarios, all
jurisdictions of tax residence should be self-certified by the Account Holder and the Account Holder should
be treated as tax resident in all identified jurisdictions. The Commentary further clarifies that reliance on
tiebreaker rules to determine the jurisdiction of residence for self-certification purposes is no longer
permitted on a prospective basis, once the changes to the CRS have taken effect.

Reflecting Government Verification Services within the CRS due diligence procedures
26.
At present, the CRS due diligence procedures are based on AML/KYC documentation, selfcertifications and other account-related information collected by Reporting Financial Institutions. At the
same time, technology is evolving in a direction that can potentially drastically simplify the documentation
of taxpayers in a highly-reliable manner. Specifically, so-called Government Verification Services (“GVS”)
may allow a third-party information provider, such as a Reporting Financial Institution, to obtain a direct
confirmation in the form of an IT-token or other unique identifier from the tax administration of the
jurisdiction of residence of the taxpayer in relation to their identity and tax residency.
27.
Reporting Financial Institutions will be allowed to rely on a GVS procedure to document an Account
Holder or Controlling Person in the CRS due diligence procedures, with the aim of making the CRS futureproof for future IT-developments. In this respect, the confirmation of an Account Holder’s or Controlling
Person’s identity and tax residence via a GVS or similar IT-driven process is recognised as a functional
equivalent to a TIN.

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Look-through requirements in respect of Controlling Persons of publicly traded Entities
(paragraphs 21 and 19 to the Commentary on Section V and VI, respectively)
28.
The CRS due diligence procedures in respect of both Pre-existing and New Entity Accounts require
Reporting Financial Institutions to look-through Passive NFEs to determine their Controlling Persons. In
doing so, Reporting Financial Institutions may rely on information collected and maintained pursuant to
AML/KYC Procedures. In this respect, the interpretative note to FATF Recommendation 10 (customer due
diligence) provides that financial institutions are not required to request information on the beneficial
owner(s) of publicly traded companies if such company is already otherwise subject to disclosure
requirements ensuring adequate transparency of beneficial ownership information. This exclusion is now
included in the CRS, in order to maintain alignment with the FATF Recommendations and in light of the
limited utility of such information for tax risk assessment purposes.

Integrating CBI/RBI guidance within the CRS (paragraph 3bis to Commentary on Section
VII)
29.
In October 2018, the OECD released explanatory guidance for Reporting Financial Institutions
aimed at addressing the misuse of certain citizenship and residence by investment (CBI/RBI) schemes,
allowing foreign individuals to obtain citizenship or temporary or permanent residence rights on the basis
of local investments or against a flat fee, to circumvent the CRS.
30.
The explanatory guidance reiterates that a Reporting Financial Institution may not rely on a selfcertification or Documentary Evidence where it knows or has reason to know, that it is incorrect or
unreliable. In making this determination, Reporting Financial Institutions should take into account the
information published by the OECD on potentially high-risk CBI/RBI schemes. The guidance also includes
a number of additional questions that Reporting Financial Institutions may raise to determine the
appropriate jurisdiction(s) of CRS reporting. The explanatory guidance is now included in the Commentary.

Incorporating FAQs
31.
Since the CRS was adopted in 2014, the OECD has been regularly asked to provide guidance on
the interpretation of the CRS. This has been typically done through the development of frequently-asked
questions (FAQs) that are published on the OECD website. In order to reflect the substantive guidance
given through the FAQs in the CRS itself, language has been added to the Commentary in several places.
FAQs not explicitly incorporated into the Commentary still remain valuable guidance for interpreting the
CRS.

Next steps
32.
Work will be undertaken to put in place the appropriate mechanisms to automatically exchange
information pursuant to the amended CRS, including the exchange frameworks and an updated XML
schema. In addition, appropriate implementation timelines will be agreed.

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Rules
Section I: General reporting requirements
A. Subject to paragraphs C through F, each Reporting Financial Institution must report the following
information with respect to each Reportable Account of such Reporting Financial Institution:
1. the:
a) name, address, jurisdiction(s) of residence, TIN(s) and date and place of birth (in the
case of an individual) of each Reportable Person that is an Account Holder of the
account and whether the Account Holder has provided a valid self-certification;
b) in the case of any Entity that is an Account Holder and that, after application of the due
diligence procedures consistent with Sections V, VI and VII, is identified as having one
or more Controlling Persons that is a Reportable Person, the name, address,
jurisdiction(s) of residence and TIN(s) of the Entity and the name, address,
jurisdiction(s) of residence, TIN(s) and date, and place of birth of each Reportable
Person, as well as the role(s) by virtue of which each Reportable Person is a
Controlling Person of the Entity and whether a valid self-certification has been provided
for each Reportable Person; and
c) whether the account is a joint account, including the number of joint Account Holders.
2. the account number (or functional equivalent in the absence of an account number), the type
of account and whether the account is a Preexisting Account or a New Account;
3. the name and identifying number (if any) of the Reporting Financial Institution;
4. the account balance or value (including, in the case of a Cash Value Insurance Contract or
Annuity Contract, the Cash Value or surrender value) as of the end of the relevant calendar
year or other appropriate reporting period or, if the account was closed during such year or
period, the closure of the account;
5. in the case of any Custodial Account:
a) the total gross amount of interest, the total gross amount of dividends, and the total
gross amount of other income generated with respect to the assets held in the account,
in each case paid or credited to the account (or with respect to the account) during the
calendar year or other appropriate reporting period; and
b) the total gross proceeds from the sale or redemption of Financial Assets paid or
credited to the account during the calendar year or other appropriate reporting period
with respect to which the Reporting Financial Institution acted as a custodian, broker,
nominee, or otherwise as an agent for the Account Holder.
6. in the case of any Depository Account, the total gross amount of interest paid or credited to
the account during the calendar year or other appropriate reporting period;
6bis. in the case of any Equity Interest held in an Investment Entity that is a legal arrangement,
the role(s) by virtue of which the Reportable Person is an Equity Interest holder; and

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7. in the case of any account not described in subparagraph A(5) or (6), the total gross amount
paid or credited to the Account Holder with respect to the account during the calendar year or
other appropriate reporting period with respect to which the Reporting Financial Institution is
the obligor or debtor, including the aggregate amount of any redemption payments made to
the Account Holder during the calendar year or other appropriate reporting period.
B. The information reported must identify the currency in which each amount is denominated.
C. Notwithstanding subparagraph A(1), with respect to each Reportable Account that is a Preexisting
Account, the TIN(s) or date of birth is not required to be reported if such TIN(s) or date of birth is not in
the records of the Reporting Financial Institution and is not otherwise required to be collected by such
Reporting Financial Institution under domestic law. However, a Reporting Financial Institution is
required to use reasonable efforts to obtain the TIN(s) and date of birth with respect to Preexisting
Accounts by the end of the second calendar year following the year in which such Accounts were
identified as Reportable Accounts and whenever it is required to update the information relating to the
Preexisting Account pursuant to domestic AML/KYC Procedures.
D. Notwithstanding subparagraph A(1), the TIN is not required to be reported if (i) a TIN is not issued by
the relevant Reportable Jurisdiction or (ii) the domestic law of the relevant Reportable Jurisdiction does
not require the collection of the TIN issued by such Reportable Jurisdiction.
E. Notwithstanding subparagraph A(1), the place of birth is not required to be reported unless the
Reporting Financial Institution is otherwise required to obtain and report it under domestic law and it is
available in the electronically searchable data maintained by the Reporting Financial Institution.
F. Notwithstanding paragraph A, the information to be reported with respect to [xxxx] is the information
described in such paragraph, except for gross proceeds described in subparagraph A(5)(b).
G. Notwithstanding subparagraph A(5)(b) and unless the Reporting Financial Institution elects otherwise
with respect to any clearly identified group of accounts, the gross proceeds from the sale or redemption
of a Financial Asset are not required to be reported to the extent such gross proceeds from the sale or
redemption of such Financial Asset are reported by the Reporting Financial Institution under the CryptoAsset Reporting Framework.
[…]

Section V: Due diligence for Preexisting Entity Accounts
The following procedures apply for purposes of identifying Reportable Accounts among Preexisting
Accounts.
[…]
D. Review Procedures for Identifying Entity Accounts With Respect to Which Reporting Is Required
[…]
2. Determine Whether the Entity is a Passive NFE with One or More Controlling Persons Who Are
Reportable Persons
[…]
b) Determining the Controlling Persons of an Account Holder. For the purposes of determining the
Controlling Persons of an Account Holder, a Reporting Financial Institution may rely on information
collected and maintained pursuant to AML/KYC Procedures.
[…]

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Section VI: Due diligence for New Entity Accounts
The following procedures apply for purposes of identifying Reportable Accounts among New Entity
Accounts.
[…]
A. Review Procedures for Identifying Entity Accounts With Respect to Which Reporting Is Required
[…]
2. Determine Whether the Entity is a Passive NFE with One or More Controlling Persons Who Are
Reportable Persons
[…]
b) Determining the Controlling Persons of an Account Holder. For the purposes of determining the
Controlling Persons of an Account Holder, a Reporting Financial Institution may rely on information
collected and maintained pursuant to AML/KYC Procedures, provided that such procedures are consistent
with the 2012 FATF Recommendations. If the Reporting Financial Institution is not legally required to apply
AML/KYC Procedures that are consistent with the 2012 FATF Recommendations, it must apply
substantially similar procedures for the purpose of determining the Controlling Persons.
[…]

Section VII: Special due diligence rules
The following additional rules apply in implementing the due diligence procedures described above:

A. Reliance on Self-Certifications and Documentary Evidence
A Reporting Financial Institution may not rely on a self-certification or Documentary Evidence if the
Reporting Financial Institution knows or has reason to know that the self-certification or Documentary
Evidence is incorrect or unreliable.
Abis. Temporary lack of Self-Certification
In exceptional circumstances where a self-certification cannot be obtained by a Reporting Financial
Institution in respect of a New Account in time to meet its due diligence and reporting obligations with
respect to the reporting period during which the account was opened, the Reporting Financial Institution
must apply the due diligence procedures for Preexisting Accounts, until such self-certification is obtained
and validated.
[…]

Section VIII: Defined terms
A. Reporting Financial Institution
[…]
5. The term “Depository Institution” means any Entity that:
a) accepts deposits in the ordinary course of a banking or similar business; or

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b) holds Specified Electronic Money Products or Central Bank Digital Currencies for the benefit
of customers.
[…]
6. The term “Investment Entity” means any Entity:
a) that primarily conducts as a business one or more of the following activities or operations for or
on behalf of a customer:
i. trading in money market instruments (cheques, bills, certificates of deposit, derivatives,
etc.); foreign exchange; exchange, interest rate and index instruments; transferable
securities; or commodity futures trading;
ii. individual and collective portfolio management; or
iii. otherwise investing, administering, or managing Financial Assets, or money , or
Relevant Crypto-Assets on behalf of other persons; or
b) the gross income of which is primarily attributable to investing, reinvesting, or trading in Financial
Assets or Relevant Crypto-Assets, if the Entity is managed by another Entity that is a Depository
Institution, a Custodial Institution, a Specified Insurance Company, or an Investment Entity
described in subparagraph A(6)(a).
An Entity is treated as primarily conducting as a business one or more of the activities described in
subparagraph A(6)(a), or an Entity’s gross income is primarily attributable to investing, reinvesting, or
trading in Financial Assets or Relevant Crypto-Assets for purposes of subparagraph A(6)(b), if the Entity’s
gross income attributable to the relevant activities equals or exceeds 50 per cent of the Entity’s gross
income during the shorter of: (i) the three-year period ending on 31 December of the year preceding the
year in which the determination is made; or (ii) the period during which the Entity has been in existence.
For the purposes of subparagraph A(6)(a)(iii), the term “otherwise investing, administering, or managing
Financial Assets, money, or Relevant Crypto-Assets on behalf of other persons” does not include the
provision of services effectuating Exchange Transactions for or on behalf of customers. The term
“Investment Entity” does not include an Entity that is an Active NFE because it meets any of the criteria in
subparagraphs D(9)(d) through (g).
This paragraph shall be interpreted in a manner consistent with similar language set forth in the definition
of “financial institution” in the Financial Action Task Force Recommendations.
[…]
7. The term “Financial Asset” includes a security (for example, a share of stock in a corporation;
partnership or beneficial ownership interest in a widely held or publicly traded partnership or trust; note,
bond, debenture, or other evidence of indebtedness), partnership interest, commodity, swap (for example,
interest rate swaps, currency swaps, basis swaps, interest rate caps, interest rate floors, commodity
swaps, equity swaps, equity index swaps, and similar agreements), Insurance Contract or Annuity
Contract, or any interest (including a futures or forward contract or option) in a security, Relevant CryptoAsset, partnership interest, commodity, swap, Insurance Contract, or Annuity Contract. The term “Financial
Asset” does not include a non-debt, direct interest in real property.
[…]
9. The term “Specified Electronic Money Product” means any product that is:
a) a digital representation of a single Fiat Currency;
b) issued on receipt of funds for the purpose of making payment transactions;
c) represented by a claim on the issuer denominated in the same Fiat Currency;
d) accepted in payment by a natural or legal person other than the issuer; and

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e) by virtue of regulatory requirements to which the issuer is subject, redeemable at any time and
at par value for the same Fiat Currency upon request of the holder of the product.
The term “Specified Electronic Money Product” does not include a product created for the sole
purpose of facilitating the transfer of funds from a customer to another person pursuant to
instructions of the customer. A product is not created for the sole purpose of facilitating the transfer
of funds if, in the ordinary course of business of the transferring Entity, either the funds connected
with such product are held longer than 60 days after receipt of instructions to facilitate the transfer,
or, if no instructions are received, the funds connected with such product are held longer than 60
days after receipt of the funds.
10. The term “Central Bank Digital Currency” means any digital Fiat Currency issued by a Central Bank.
11. The term “Fiat Currency” means the official currency of a jurisdiction, issued by a jurisdiction or by a
jurisdiction’s designated Central Bank or monetary authority, as represented by physical banknotes or
coins or by money in different digital forms, including bank reserves, commercial bank money, electronic
money products and Central Bank Digital Currencies.
12. The term “Crypto-Asset” means a digital representation of value that relies on a cryptographically
secured distributed ledger or a similar technology to validate and secure transactions.
13. The term “Relevant Crypto-Asset” means any Crypto-Asset that is not a Central Bank Digital
Currency, a Specified Electronic Money Product or any Crypto-Asset for which the Reporting Crypto-Asset
Service Provider has adequately determined that it cannot be used for payment or investment purposes.
14. The term “Exchange Transaction” means any:
a) exchange between Relevant Crypto-Assets and Fiat Currencies; and
b) exchange between one or more forms of Relevant Crypto-Assets.
[…]

B. Non-Reporting Financial Institution
1. The term “Non-Reporting Financial Institution” means any Financial Institution that is:
a) a Governmental Entity, International Organisation or Central Bank, other than:
i) with respect to a payment that is derived from an obligation held in connection with a
commercial financial activity of a type engaged in by a Specified Insurance Company,
Custodial Institution, or Depository Institution; or
ii) with respect to the activity of maintaining Central Bank Digital Currencies for Account
Holders which are not Financial Institutions, Governmental Entities, International
Organisations or Central Banks.
[…]

C. Financial Account
[…]
2. The term “Depository Account” includes any commercial, checking, savings, time, or thrift account, or
an account that is evidenced by a certificate of deposit, thrift certificate, investment certificate, certificate
of indebtedness, or other similar instrument maintained by a Depository Institution Financial Institution in
the ordinary course of a banking or similar business. A Depository Account also includes:
a) an amount held by an insurance company pursuant to a guaranteed investment contract or
similar agreement to pay or credit interest therein;
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b) an account or notional account that represents all Specified Electronic Money Products held for
the benefit of a customer; and
c) an account that holds one or more Central Bank Digital Currencies for the benefit of a customer.
[…]
9. The term “Preexisting Account” means a Financial Account maintained by a Reporting Financial
Institution as of [xx/xx/xxxx] or, if the account is treated as a Financial Account solely by virtue of the
amendments to the Common Reporting Standard, as of [effective date of the revised CRS-1 day].
10. The term “New Account” means a Financial Account maintained by a Reporting Financial Institution
opened on or after [xx/xx/xx] or, if the account is treated as a Financial Account solely by virtue of the
amendments to the Common Reporting Standard, on or after [effective date of the revised CRS].
[…]
17. The term “Excluded Account” means any of the following accounts:
[…]
e) an account established in connection with any of the following:
[…]
v) a foundation or capital increase of a company provided that the account satisfies the following
requirements:
i) the account is used exclusively to deposit capital that is to be used for the purpose of the
foundation or capital increase of a company, as prescribed by law;
ii) any amounts held in the account are blocked until the Reporting Financial Institution obtains an
independent confirmation regarding the foundation or capital increase;
iii) the account is closed or transformed into an account in the name of the company after the
foundation or capital increase;
iv) any repayments resulting from a failed foundation or capital increase, net of service provider
and similar fees, are made solely to the persons who contributed the amounts; and
v) the account has not been established more than 12 months ago.
ebis) A Depository Account that represents all Specified Electronic Money Products held for the benefit of
a customer, if the rolling average 90 day end-of-day aggregate account balance or value during any period
of 90 consecutive days did not exceed USD 10,000 at any day during the calendar year or other appropriate
reporting period.

D. Reportable Account
[…]
2. The term “Reportable Person” means a Reportable Jurisdiction Person other than (i) a corporation an
Entity the stock of which is regularly traded on one or more established securities markets; (ii) any
corporation Entity that is a Related Entity of an Entity described in clause (i)…
[…]

E. Miscellaneous
[…]

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7. The term “Government Verification Service” is an electronic process made available by a Reportable
Jurisdiction to a Reporting Financial Institution for the purposes of ascertaining the identity and tax
residence of an Account Holder or Controlling Person.
[…]

Section X: Transitional measures
A. The amendments to the Common Reporting Standard are effective as of [effective date of the revised
CRS].
B. Notwithstanding paragraph A, under subparagraph A(1)(b) and A(6)(bis) of Section I, with respect to
each Reportable Account that is maintained by a Reporting Financial Institution as of [effective date of the
revised CRS-1 day] and for reporting periods ending by the second calendar year following such date,
information with respect to the role(s) by virtue of which each Reportable Person is a Controlling Person
or Equity Interest holder of the Entity is only required to be reported if such information is available in the
electronically searchable data maintained by the Reporting Financial Institution.

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Commentary
Commentary on Section I
[…]

Paragraph A – Information to be reported
3. Pursuant to paragraph A, each Reporting Financial Institution must report the following information with
respect to each Reportable Account of such Reporting Financial Institution:
a) in the case of any individual that is an Account Holder and a Reportable Person: the name,
address, jurisdiction(s) of residence, TIN(s) and date and place of birth, whether the Account
Holder has provided a valid self-certification and whether the account is a joint account,
including the number of joint Account Holders;
b) in the case of any Entity that is an Account Holder and a Reportable Person: the name,
address, jurisdiction(s) of residence and TIN(s), whether the Account Holder has provided a
valid self-certification and whether the account is a joint account, including the number of joint
Account Holders;
c) in the case of any Entity that is an Account Holder and that is identified as having one or more
Controlling Persons that is a Reportable Person:
1. the name, address, jurisdiction(s) of residence and TIN(s) of the Entity; and
2. the name, address, jurisdiction(s) of residence, TIN(s), date and place of birth of each
Controlling Person that is a Reportable Person, as well as the role(s) by virtue of which
the Reportable Person is a Controlling Person of the Entity and whether a valid selfcertification has been provided for such Reportable Person;
d) the account number (or functional equivalent in the absence of an account number) and the
type of account and whether the account is a Preexisting Account or a New Account;
e) the name and identifying number (if any) of the Reporting Financial Institution; and
f)

the account balance or value (including, in the case of a Cash Value Insurance Contract or
Annuity Contract, the Cash Value or surrender value) as of the end of the relevant calendar
year or other appropriate reporting period or, if the account was closed during such year or
period, the closure of the account.

4. In addition, the following information must be reported:
[…]
bbis) in the case of any Equity Interest held in an Investment Entity that is a legal arrangement, the role(s)
by virtue of which the Reportable Person is an Equity Interest holder.
[…]

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Subparagraph A(1) – Role(s) of the Controlling Person
7bis. The role(s) of each Reportable Person that is a Controlling Person in respect of an Entity is required
to be reported. The requirements to identify Controlling Persons, as well as their roles with respect to the
Entity, are governed by AML/KYC Procedures, as set out in paragraphs 132 et seq. of the Commentary to
Section VIII. Where a Reportable Person is a Controlling Person by virtue of more than one role in respect
of an Entity other than a trust or a similar legal arrangement, the Reporting Financial Institution must report
according to the hierarchy of roles indicated in paragraph 133 of the Commentary to Section VIII (i.e.
ownership interests, control through other means, senior managing official), provided the identification of
the role is required by AML/KYC Procedures. This is illustrated by the following example:

Example: A Reporting Financial Institution maintains a Financial Account on behalf of an Entity
Account Holder that is a corporation. The Reporting Financial Institution identifies that a Reportable
Person is a Controlling Person of such Entity Account Holder by virtue of owning 51% of the
ownership and voting interests in such Entity, as well as by being a senior managing official of such
Entity. The Reporting Financial Institution is only required to indicate that the Reportable Person is
a Controlling Person by virtue of its ownership interests, as this role comes first in the hierarchy
specified in paragraph 7bis of Commentary to Section I.

7ter. Where a Reportable Person is a Controlling Person of a trust or a similar legal arrangement by virtue
of more than one role, the Reporting Financial Institution must report each role, provided the identification
of the roles is required by AML/KYC Procedures. This requirement also applies with respect to the
identification of the roles of Equity Interest holders, pursuant to subparagraph A(6bis), of a trust or a similar
legal arrangement.
[…]

Subparagraph A(2) – Account number, type of account, Preexisting or New Account
8bis. The Reporting Financial Institution must also report whether an account is a Preexisting Account or
a New Account as defined under subparagraphs C(9) and C(10) of Section VIII, respectively.
8ter. The account type to be reported with respect to an account is the type of Financial Account maintained
by the Reporting Financial Institution for the Account Holder, as described under subparagraph C(1) of
Section VIII.
[…]

Subparagraph A(4) – Account balance or value
[…]
14. In the case of an account closure, the Reporting Financial Institution has no obligation to report the
account balance or value before or at closure, but must report that the account was closed. In determining
when an account is “closed”, reference must be made to the applicable law in a particular jurisdiction. If
the applicable law does not address closure of accounts, an account will be considered to be closed
according to the normal operating procedures of the Reporting Financial Institution that are consistently
applied for all accounts maintained by such institution. For example, an equity or debt interest in a Financial
Institution would generally be considered to be closed upon termination, transfer, surrender, redemption,
cancellation, or liquidation. An account with a balance or value equal to zero or that is negative will not be
a closed account solely by reason of such balance or value. Similarly, if a discretionary beneficiary of a
trust that is a Financial Institution receives a distribution from the trust in a given year, but not in a following
year, the absence of a distribution does not constitute an account closure, as long as the beneficiary is not
permanently excluded from receiving future distributions from the trust.

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[…]

Subparagraph A(5)(b) – Gross proceeds
17. In the case of a Custodial Account, information to be reported includes the total gross proceeds from
the sale or redemption of Financial Assets paid or credited to or with respect to the account during the
calendar year or other appropriate reporting period with respect to which the Reporting Financial Institution
acted as a custodian, broker, nominee, or otherwise as an agent for the Account Holder. The term “sale or
redemption” means any sale or redemption of Financial Assets, determined without regard to whether the
owner of such Financial Assets is subject to tax with respect to such sale or redemption.
[…]
19. With respect to a sale that is effected by a broker that results in a payment of gross proceeds, the date
the gross proceeds are considered paid is the date that the proceeds of such sale are credited to or with
respect to the account of or otherwise made available to the person entitled to the payment.
20. The total gross proceeds from a sale or redemption means the total amount realised as a result of a
sale or redemption of Financial Assets. In the case of a sale effected by a broker, the total gross proceeds
from a sale or redemption means the total amount paid or credited to or with respect to the account of the
person entitled to the payment increased by any amount not so paid by reason of the repayment of margin
loans; the broker may (but is not required to) take commissions with respect to the sale into account in
determining the total gross proceeds. In the case of a sale of an interest bearing debt obligation, gross
proceeds includes any interest accrued between interest payment dates.
[…]

Paragraph C through G – Exceptions
TIN and date of birth
[…]
25. Paragraph C contains an exception applicable to Preexisting Accounts: the TIN or date of birth is not
required to be reported if (i) such TIN or date of birth is not in the records of the Reporting Financial
Institution, and (ii) there is not otherwise a requirement for such TIN or date of birth to be collected by such
Reporting Financial Institution under domestic law. Thus, the TIN or date of birth is required to be reported
if either:

the TIN or date of birth is in the records of the Reporting Financial Institution (whether or not there
is an obligation to have it in the records); or

the TIN or date of birth is not in the records of the Reporting Financial Institution, but it is otherwise
required to be collected by such Reporting Financial Institution under domestic law (e.g. AML/KYC
Procedures).

26. The “records” of a Reporting Financial Institution include the customer master file and electronically
searchable information (see paragraph 34 below). A “customer master file” includes the primary files of a
Reporting Financial Institution for maintaining account holder information, such as information used for
contacting account holders and for satisfying AML/KYC Procedures. Reporting Financial Institutions would
generally have a two-year period to complete the review procedures for identifying Reportable Accounts
among Lower Value Accounts (see paragraph 51 of the Commentary on Section III) and, thus, could first
review their electronic records (or obtain TIN or date of birth from the Account Holder) and then review
their paper records.

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27. In addition, even where a Reporting Financial Institution does not have the TIN or date of birth for a
Preexisting Account in its records and is not otherwise required to collect such information under domestic
law, the Reporting Financial Institution is required to use reasonable efforts to obtain the TIN and date of
birth with respect to Preexisting Accounts by the end of the second calendar year following the year in
which such Accounts were identified as Reportable Accounts and whenever it is required to update the
information relating to the Preexisting Account pursuant to domestic AML/KYC Procedures, unless one of
the exceptions in paragraph D applies with respect to the TIN and it is not required to be reported.
28. “Reasonable efforts” means genuine attempts to acquire the TIN and date of birth of the Account
Holder of a Reportable Account. Such efforts must be made, at least once a year, during the period
between the identification of the Preexisting Account as a Reportable Account and the end of the second
calendar year following the year of that identification and whenever it is required to update the information
relating to the Preexisting Account pursuant to domestic AML/KYC Procedures. Examples of reasonable
efforts include contacting the Account Holder (e.g. by mail, in-person or by phone), including a request
made as part of other documentation or electronically (e.g. by facsimile or by e-mail); and reviewing
electronically searchable information maintained by a Related Entity of the Reporting Financial Institution,
in accordance with the aggregation principles set forth in paragraph C of Section VII. However, reasonable
efforts do not necessarily require closing, blocking, or transferring the account, nor conditioning or
otherwise limiting its use. Notwithstanding the foregoing, reasonable efforts may continue to be made after
the abovementioned period at any time.
[…]

Financial Assets subject to reporting under Crypto-Asset Reporting Framework
36. Paragraph G contains an optional exception for reporting by Reporting Financial Institutions with
respect to the gross proceeds from the sale or redemption of a Financial Asset, to the extent such gross
proceeds from the sale or redemption of such Financial Asset are reported by the Reporting Financial
Institution under the Crypto-Asset Reporting Framework, as illustrated by the following example:
An individual, A, holds a Custodial Account with C, a custodial Crypto-Asset exchange that is a Reporting
Financial Institution. At the beginning of the year, A holds 5 units of security token X in the Custodial
Account with C. Throughout the year, A acquires an additional 3 units of security token X and disposes of
2 units. C reports the account balance of the Custodial Account under subparagraph A(4). C reports the
disposals and acquisitions of security token X under the Crypto-Asset Reporting Framework and is
therefore not required to report the gross proceeds from the disposals of security token X under
subparagraph A(5)(b).
[…]

Commentary on Section IV
1. This Section contains the due diligence procedures for New Individual Accounts and provides for the
collection of a self-certification (and confirmation of its reasonableness).
2. According to paragraph A, upon account opening, the Reporting Financial Institution must:

obtain a self-certification, which may be part of the account opening documentation, that allows the
Reporting Financial Institution to determine the Account Holder’s residence(s) for tax purposes;
and

confirm the reasonableness of such self-certification based on the information obtained by the
Reporting Financial Institution in connection with the opening of the account, including any
documentation collected pursuant to AML/KYC Procedures.

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2bis. While as a general rule a self-certification must be obtained on the day of the account opening, there
may be a limited number of circumstances, where due to the specificities of a business sector it is not
possible to obtain a self-certification on ‘day one’ of the account opening process. For example, this may
be the case where an insurance contract has been assigned from one person to another, where an account
holder changes as a result of a court order, where a newly created company is in the process of obtaining
a TIN or where an investor acquires shares in an investment trust on the secondary market. In addition, it
is acknowledged that, even where a self-certification is obtained at account opening, validation of the selfcertification may not always be completed on the day of the account opening (e.g. in circumstances where
validation is a process undertaken by a back-office function within the Reporting Financial Institution). In
these circumstances, the self-certification must be both obtained and validated by the Reporting Financial
Institution as quickly as feasible, and in any case within a period of 90 calendar days and in time to be able
to meet its due diligence and reporting obligations with respect to the reporting period during which the
account was opened. In this respect, it is expected that jurisdictions have strong measures in place to
ensure that valid self-certifications are always obtained for New Accounts (as described in paragraph 18
to the Commentary on Section IX).
[…]
4. The self-certification must allow determining the Account Holder’s residence(s) for tax purposes.
Generally, an individual will only have one jurisdiction of residence. However, an individual may be resident
for tax purposes in two or more jurisdictions under the domestic laws of such jurisdictions. In those
circumstances, the expectation is that all jurisdictions of residence are to be declared in a self-certification
and that the Reporting Financial Institution must treat the account as a Reportable Account in respect of
each Reportable Jurisdiction. The domestic laws of the various jurisdictions lay down the conditions under
which an individual is to be treated as fiscally ‘resident’. They cover various forms of attachment to a
jurisdiction which, in the domestic taxation laws, form the basis of a comprehensive taxation (full liability to
tax). They also cover cases where an individual is deemed, according to the taxation laws of a jurisdiction,
to be resident of that jurisdiction (e.g. diplomats or other persons in government service). To solve cases
of double residence, tax conventions contain special rules which give the attachment to one jurisdiction a
preference over the attachment of the other jurisdiction for purposes of these conventions. Generally, an
individual will be resident for tax purposes in a jurisdiction if, under the laws of that jurisdiction (including
tax conventions), he pays or should be paying tax therein by reason of his domicile, residence or any other
criterion of a similar nature, and not only from sources in that jurisdiction. Dual resident individuals may
rely on the tiebreaker rules contained in tax conventions (if applicable) to solve cases of double residence
for determining their residence for tax purposes (see paragraph 23 below), until [effective date of the
amended CRS]. Following [effective date of the amended CRS], dual resident individuals that are (re-)
documented may not rely on tiebreaker rules and will be expected to declare all their jurisdictions of
residence.
[…]

Requirements for validity of self-certification
7. A “self-certification” is a certification by the Account Holder that provides the Account Holder’s or status
and any other information that may be reasonably requested by the Reporting Financial Institution to fulfil
its reporting and due diligence obligations, such as whether the Account Holder is resident for tax purposes
in a Reportable Jurisdiction. With respect to New Individual Accounts, a self-certification is valid only if it is
signed (or otherwise positively affirmed) by the Account Holder, it is dated at the latest at the date of receipt,
and it contains the Account Holder’s:
a) name;
b) residence address;

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c) jurisdiction(s) of residence for tax purposes; d) TIN with respect to each Reportable Jurisdiction
(see paragraph 8 below); and
e) date of birth (see paragraph 8 below).
The self-certification may be pre-populated by the Reporting Financial Institution to include the Account
Holder’s information, except for the jurisdiction(s) of residence for tax purposes, to the extent already
available in its records.
[…]
11. A self-certification may be signed (or otherwise positively affirmed) by any person authorised to sign
on behalf of the Account Holder under domestic law. A person authorised to sign a self-certification
generally includes an executor of an estate, any equivalent of the former title, and any other person that
has been provided written authorisation by the Account Holder to sign documentation on such person’s
behalf.
11bis. A self-certification is otherwise positively affirmed if the person making the self-certification provides
the Reporting Financial Institution with an unambiguous acknowledgement that they agree with the
representations made through the self-certification. In all cases, the positive affirmation is expected to be
captured by the Reporting Financial Institution in a manner such that it can credibly demonstrate that the
self-certification was positively affirmed (e.g. voice recording, digital footprint, etc.). The approach taken
by the Reporting Financial Institution in obtaining the self-certification is expected to be in a manner
consistent with the procedures followed by the Reporting Financial Institution for the opening of the
account. The Reporting Financial Institution will need to maintain a record of this process for audit
purposes, in addition to the self-certification itself.
[…]

Reasonableness of self-certifications
[…]
25. In the case of a self-certification that would otherwise fail the reasonableness test, it is expected that
in the course of the account opening procedures the Reporting Financial Institution would obtain either (i)
a valid self-certification, or (ii) a reasonable explanation and documentation (as appropriate) supporting
the reasonableness of the self-certification (and retain a copy or a notation of such explanation and
documentation). Examples of such “reasonable explanation” include a statement by the individual that he
or she (1) is a student at an educational institution in the relevant jurisdiction and holds the appropriate
visa (if applicable); (2) is a teacher, trainee, or intern at an educational institution in the relevant jurisdiction
or a participant in an educational or cultural exchange visitor program, and holds the appropriate visa (if
applicable); (3) is a foreign individual assigned to a diplomatic post or a position in a consulate or embassy
in the relevant jurisdiction; or (4) is a frontier worker or employee working on a truck or train travelling
between jurisdictions. The following example illustrates the application of this paragraph: A Reporting
Financial Institution obtains a self-certification for the Account Holder upon account opening. The
jurisdiction of residence for tax purposes contained in the self-certification conflicts with the residence
address contained in the documentation collected pursuant to AML/KYC Procedures. The Account Holder
explains that she is a diplomat from a particular jurisdiction and that, as a consequence, she is resident in
such jurisdiction; she also presents her diplomatic passport. Because the Reporting Financial Institution
obtained a reasonable explanation and documentation supporting the reasonableness of the selfcertification, the self-certification passes the reasonableness test.
25bis. Similarly, where an individual Account Holder indicates on a self-certification that he or she does
not have a residence for tax purposes, the Reporting Financial Institution is required to confirm the
reasonableness of the self-certification on the basis of other documentation, including any documentation

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collected pursuant to AML/KYC Procedures that is at its disposal. For instance, the fact that the selfcertification indicates that the Account Holder has no residence for tax purposes but the other
documentation on file contains an address constitutes a reason to doubt the validity of the self-certification.
In such cases, the Reporting Financial Institution must ensure that it obtains a reasonable explanation and
documentation, as appropriate, that supports the reasonableness of the self-certification. If the Reporting
Financial Institution does not obtain a reasonable explanation as to the reasonableness of the selfcertification, the Reporting Financial Institution may not rely on the self-certification and must obtain a new,
valid self-certification from the Account Holder.
[…]

Commentary on Section V
[…]

Paragraph D – Review procedures
[…]

Subparagraph D2 – Review procedure for Controlling Persons
[…]
20. For purposes of determining whether the Account Holder is a Passive NFE, according to subparagraph
D(2)(a), the Reporting Financial Institution must obtain a self-certification from the Account Holder to
establish its status, unless it has information in its possession or that is publicly available (see paragraph
12 above), based on which it can reasonably determine that the Account Holder is an Active NFE or a
Financial Institution other than a non-participating professionally managed investment entity (i.e. an
Investment Entity described in subparagraph A(6)(b) of Section VIII that is not a Participating Jurisdiction
Financial Institution). For example, a Reporting Financial Institution could reasonably determine that the
Account Holder is an Active NFE where the Account Holder is legally prohibited from conducting activities
or operations, or holding assets, for the production of passive income (see paragraph 126 of the
Commentary on Section VIII). The self-certification to establish the Account Holder’s status must comply
with the requirements for the validity of self-certification with respect to Preexisting Entity Accounts (see
paragraphs 13-17 above). A Reporting Financial Institution that cannot determine the status of the Account
Holder as an Active NFE or a Financial Institution other than non-participating professionally managed
investment entity must presume that it is a Passive NFE.
21. For the purposes of determining the Controlling Persons of an Account Holder, according to
subparagraph D(2)(b), a Reporting Financial Institution may rely on information collected and maintained
pursuant to AML/KYC Procedures consistent with FATF Recommendation 10, where a publicly listed
company exercises control over an Account Holder that is a Passive NFE there is no requirement to
determine the Controlling Persons of such company, if such company is already subject to disclosure
requirements ensuring adequate transparency of beneficial ownership information.
[…]

Commentary on Section VI
[…]

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4bis. In a limited number of circumstances where a self-certification cannot be obtained or validated upon
account opening, the self-certification must be both obtained and validated by the Reporting Financial
Institution as quickly as feasible and in any case within a period of 90 calendar days and in time to be able
to meet its due diligence and reporting obligations with respect to the reporting period during which the
account was opened (see paragraph 2bis of the Commentary on Section IV).
[…]
7. The self-certification must allow determining the Account Holder’s residence(s) for tax purposes. It may
be rare in practice for an Entity to be subject to tax as a resident in more than one jurisdiction, but it is, of
course, possible. In those circumstances, the expectation is that all jurisdictions of residence are to be
declared in a self-certification and that the Reporting Financial Institution must treat the account as a
Reportable Account in respect of each Reportable Jurisdiction. The domestic laws of the various
jurisdictions lay down the conditions under which an Entity is to be treated as fiscally ‘resident’. They cover
various forms of attachment to a jurisdiction which, in the domestic taxation laws, form the basis of a
comprehensive taxation (full tax liability). To solve cases of double residence, tax conventions contain
special rules which give the attachment to one jurisdiction a preference over the attachment of the other
jurisdiction for purposes of those conventions. Generally, an Entity will be resident for tax purposes in a
jurisdiction if, under the laws of that jurisdiction (including tax conventions), it pays or should be paying tax
therein by reason of its domicile, residence, place of management or incorporation, or any other criterion
of a similar nature, and not only from sources in that jurisdiction. Dual resident Entities may rely on the
tiebreaker rules contained in tax conventions (if applicable) to solve cases of double residence for
determining their residence for tax purposes (see paragraph 13 below), until [effective date of the amended
CRS]. Following [effective date of the amended CRS], dual resident Entities that are (re-)documented may
not rely on tiebreaker rules and will be expected to declare all their jurisdictions of residence.
[…]

Paragraph A(2) – Review procedure for Controlling Persons
[…]
19. For the purposes of determining the Controlling Persons of an Account Holder, according to
subparagraph A(2)(b), a Reporting Financial Institution may rely on information collected and maintained
pursuant to AML/KYC Procedures, provided that such AML/KYC Procedures are consistent with FATF
Recommendations 10 and 25 (as adopted in February 2012). If the Reporting Financial Institution is not
legally required to apply AML/KYC Procedures that are consistent with the 2012 FATF Recommendations,
it must apply substantially similar procedures for the purpose of determining the Controlling Persons.
Consistent with FATF Recommendation 10, where a publicly listed company exercises control over an
Account Holder that is a Passive NFE, there is no requirement to determine the Controlling Persons of
such company, if such company is already subject to disclosure requirements ensuring adequate
transparency of beneficial ownership information.
[…]

Commentary on Section VII
[…]

Paragraph A – Reliance on Self-Certification and Documentary Evidence
2. Paragraph A contains the standards of knowledge applicable to a self-certification or Documentary
Evidence. It provides that a Reporting Financial Institution may not rely on a self-certification or
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Documentary Evidence if the Reporting Financial Institution knows (i.e. has actual knowledge) or has
reason to know that the self-certification or Documentary Evidence is incorrect or unreliable.
3. A Reporting Financial Institution has reason to know that a self-certification or Documentary Evidence
is unreliable or incorrect if its knowledge of relevant facts or statements contained in the self-certification
or other documentation, including the knowledge of the relevant relationship managers, if any (see
paragraphs 38-42 and 50 of the Commentary on Section III), is such that a reasonably prudent person in
the position of the Reporting Financial Institution would question the claim being made. A Reporting
Financial Institution also has reason to know that a self-certification or Documentary Evidence is unreliable
or incorrect if there is information in the documentation or in the Reporting Financial Institution’s account
files that conflicts with the person’s claim regarding its status.
3bis. In confirming the reasonableness of a self-certification, Reporting Financial Institutions may be
confronted with instances where an Account Holder or Controlling Person has provided documentation
issued under a citizenship or residence by investment scheme (CBI/RBI scheme), which allows a foreign
individual to obtain citizenship or temporary or permanent residence rights on the basis of local investments
or against a flat fee. Certain high-risk CBI/RBI schemes may be potentially misused to circumvent reporting
under the CRS. Such potentially high-risk CBI/RBI schemes are those that give a taxpayer access to a low
personal income tax rate on offshore financial assets and do not require significant physical presence in
the jurisdiction offering the CBI/RBI scheme. The OECD endeavours to publish information on such
potentially high-risk CBI/RBI schemes on its website. It is expected that Reporting Financial Institutions
rely on the OECD-published information in making the determination of whether they have a reason to
know that the self-certification is incorrect or unreliable. In particular, where the Reporting Financial
Institution has doubts as to the tax residency(ies) of an Account Holder or Controlling Person related to
the fact that such person is claiming residence in a jurisdiction offering a potentially high-risk CBI/RBI
scheme, the Reporting Financial Institution should not rely on such self-certification until it has taken further
measures to ascertain the tax residency(ies) of such persons, including through raising further questions.
Examples of such questions may include whether the Account Holder (1) has obtained residence rights
under an CBI/RBI scheme; (2), holds residence rights in any other jurisdiction(s); and (3) has spent more
than 90 days in any other jurisdiction(s) during the previous year, as well as (4) the jurisdictions in which
the Account Holder has filed personal income tax returns during the previous year. The responses to these
questions, accompanied by the relevant supporting documentation where applicable, should assist the
Reporting Financial Institution in ascertaining whether the self-certification passes the reasonableness test.

Standards of knowledge applicable to self-certifications
4. A Reporting Financial Institution has reason to know that a self-certification provided by a person is
unreliable or incorrect if the self-certification is incomplete with respect to any item on the self-certification
that is relevant to the claims made by the person, the self-certification contains any information that is
inconsistent with the person’s claim, or the Reporting Financial Institution has other account information
that is inconsistent with the person’s claim. A Reporting Financial Institution that relies on a service provider
to review and maintain a self-certification is considered to know or have reason to know the facts within
the knowledge of the service provider.
4bis. A Reporting Financial Institution will have reason to know that a self-certification is unreliable or
incorrect if the self-certification does not contain a TIN and the information disseminated by the OECD
indicates that the Reportable Jurisdiction issues TINs to all tax residents. The Common Reporting Standard
does not require a Reporting Financial Institution to confirm the format and other specifications of a TIN
with the information disseminated by the OECD. However, Reporting Financial Institutions may
nevertheless wish to do so in order to enhance the quality of the information collected and minimise the
administrative burden associated with any follow up concerning reporting of an incorrect TIN. In this case,

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they may also use regional and national websites providing a TIN check module for the purpose of further
verifying the accuracy of the TIN provided in the self-certification.
4ter. There may be instances where the AML/KYC Procedures to be applied by Reporting Financial
Institutions change. In this respect, Section VIII(E)(2) provides that the term “AML/KYC Procedures” means
the customer due diligence procedures of a Reporting Financial Institution pursuant to the anti-money
laundering or similar requirements to which such a Reporting Financial Institution is subject. Consequently,
for carrying out the due diligence procedures of Sections III-VII, the applicable AML/KYC Procedures are
those to which a Reporting Financial Institution is subject at a given moment in time, as long as, for New
Accounts, such procedures are consistent with the 2012 FATF Recommendations. Where there is an
amendment to the applicable AML/KYC Procedures (e.g. upon a jurisdiction implementing new FATF
Recommendations), Reporting Financial Institutions may be required to collect and maintain additional
information for AML/KYC purposes in that jurisdiction. For the purposes of the due diligence procedures
set out in Sections III-VII and in line with paragraph 17 of the Commentary on Section III, the additional
information obtained under such amended AML/KYC Procedures must be used to determine whether there
has been a change of circumstances in relation to the identity and/or reportable status of Account Holders
and/or Controlling Persons. As explained in paragraph 4, above, if the additional information obtained is
inconsistent with the claims made by a person in a self-certification, then there has been a change in
circumstances and a Reporting Financial Institution will have a reason to know that a self-certification is
unreliable or incorrect.
[…]

Paragraph Abis – Temporary lack of Self-Certification
10bis. Paragraph Abis contains the special due diligence procedure that must be temporarily applied in
exceptional circumstances where a self-certification cannot be obtained and validated by a Reporting
Financial Institution in respect of a New Account in time to meet its due diligence and reporting obligations
with respect to the reporting period during which the account was opened. Where the self-certification
cannot be obtained and validated in respect of a New Individual Account, the Reporting Financial Institution
must temporarily apply the due diligence procedures for Preexisting Individual Accounts under Section III.
Similarly, where a self-certification cannot be obtained and validated in respect of a New Entity Account,
the Reporting Financial Institution must temporarily apply the due diligence procedures for Preexisting
Entity Accounts under Section V.
10ter. Notwithstanding the above, for the purposes of subparagraph A(2) of Section I, such accounts
should be reported upon as New Accounts.
[…]

Commentary on Section VIII
[…]

Paragraph A – Reporting Financial Institution
[…]

Subparagraph A(3) through (811) – Financial Institution
[…]
Custodial Institution

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9. Subparagraph A(4) defines the term “Custodial Institution” as any Entity that holds, as a substantial
portion of its business, Financial Assets for the account of others.
10. It further establishes the ‘substantial portion’ test. An Entity holds Financial Assets for the account of
others as a substantial portion of its business if the Entity’s gross income attributable to the holding of
Financial Assets and related financial services equals or exceeds 20 per cent of the Entity’s gross income
during the shorter of:

the three-year period that ends on 31 December (or the final day of a non-calendar year accounting
period) prior to the year in which the determination is being made; or

the period during which the Entity has been in existence.

‘Income attributable to holding Financial Assets and related financial services’ means custody, account
maintenance, and transfer fees; commissions and fees earned from executing and pricing securities
transactions with respect to Financial Assets held in custody; income earned from extending credit to
customers with respect to Financial Assets held in custody (or acquired through such extension of credit);
income earned on the bid-ask spread of Financial Assets held in custody; and fees for providing financial
advice with respect to Financial Assets held in (or potentially to be held in) custody by the entity; and for
clearance and settlement services.
10bis. Income attributable to related financial services also includes commissions and fees from holding,
transferring and exchanging of Relevant Crypto-Assets held in custody.
10ter. For the purposes of the gross income test, all remuneration for the relevant activities of an Entity is
to be taken into account, independent of whether that remuneration is paid directly to the Entity to which
the test is applied or to another Entity. For example, in certain instances, a professional accounting or law
firm sets up a trust for a client and, as part of that process, appoints a corporate trustee. The client then
pays the accounting or law firm for all services rendered in relation to the set-up of the trust, including the
appointment of the corporate trustee and other trustee services. As such, the corporate trustee itself does
not receive a direct remuneration for its services as these are paid to the accounting or law firm as part of
the overall package. This issue can also arise in the context of Entities that provide custodial services if
the fees for such services are paid to another Entity. In both instances, such remuneration should be taken
into account for the purposes of the gross income test.
11. Entities that safe keep Financial Assets for the account of others, such as custodian banks, brokers
and central securities depositories, would generally be considered Custodial Institutions. Entities that do
not hold Financial Assets for the account of others, such as insurance brokers, will not be Custodial
Institutions.
11bis. For Financial Assets issued in the form of a Relevant Crypto-Asset, “safekeeping” is understood to
also include the safekeeping or administration of instruments enabling control over such assets (for
example, private keys), to the extent that the Entity has the ability to manage, trade or transfer to third
parties the underlying Financial Assets on the user’s behalf. Consequently, an Entity that solely offers
storage or security services for private keys to such Financial Assets, would not be considered a Custodial
Institution.
Depository Institution
12. Subparagraph A(5) defines the term “Depository Institution” as any Entity that a) accepts deposits in
the ordinary course of a banking or similar business; or b) holds Specified Electronic Money Products or
Central Bank Digital Currencies for the benefit of customers.
13.
An Entity is considered to be engaged in accept deposits in the ordinary course of a ‘banking or
similar business’ if, in the ordinary course of its business with customers, the Entity accepts deposits or
other similar investments of funds and regularly engages in, or is licenced to engage in, one or more of the
following activities:
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a) makinges personal, mortgage, industrial, or other loans or providinges other extensions of credit;
b) purchasinges, sellings, discountings, or negotiatinges accounts receivable, instalment obligations,
notes, drafts, checks, bills of exchange, acceptances, or other evidences of indebtedness;
c) issuinges letters of credit and negotiatinges drafts drawn thereunder;
d) providinges trust or fiduciary services;
e) financinges foreign exchange transactions; or
f)

enterings into, purchasinges, or disposinges of finance leases or leased assets.

An Entity is not considered to be engaged in accept deposits in the ordinary course of a banking or similar
business if the Entity solely accepts deposits from persons as a collateral or security pursuant to a sale or
lease of property or pursuant to a similar financing arrangement between such Entity and the person
holding the deposit with the Entity.
14.
Savings banks, commercial banks, savings and loan associations, and credit unions would
generally be considered Depository Institutions. However, whether an Entity conducts a banking or similar
business is determined based upon the character of the actual activities of such Entity.
14. An Entity is also considered a Depository Institution if it holds Specified Electronic Money Products or
Central Bank Digital Currencies for the benefit of customers. In most instances, such Entity will be the
issuer of the Specified Electronic Money Products or Central Bank Digital Currencies. With respect to
Specified Electronic Money Products issued in the form of a Crypto-Asset, the Depository Institution that
holds such product will typically be a custodial Crypto-Asset exchange or wallet provider.
[…]
Investment Entity
[…]
16. Subparagraph A(6)(a) defines the first type of “Investment Entity” as any Entity that primarily conducts
as a business one or more of the following activities or operations for or on behalf of a customer:
a) trading in money market instruments (cheques, bills, certificates of deposit, derivatives, etc.);
foreign exchange; exchange, interest rate and index instruments; transferable securities; or
commodity futures trading;
b) individual and collective portfolio management; or
c) otherwise investing, administering, or managing Financial Assets, or money (including Central
Bank Digital Currencies), or Relevant Crypto-Assets on behalf of other persons.
Such activities or operations do not include rendering non-binding investment advice to a customer. For
purposes of subparagraph A(6)(a), the term “customer” includes the Equity Interest holder of a collective
investment vehicle, whereby the collective investment vehicle is considered to conduct its activities or
operations as a business. For purposes of subparagraph A(6)(a)(iii), the term “investing, administering, or
trading” does not comprise the provision of services effectuating Exchange Transactions for or on behalf
of customers.
17. Subparagraph A(6)(b) defines the second type of “Investment Entity” as any Entity the gross income
of which is primarily attributable to investing, reinvesting, or trading in Financial Assets or Relevant CryptoAssets, if the Entity is managed by another Entity that is a Depository Institution, a Custodial Institution, a
Specified Insurance Company, or an Investment Entity described in subparagraph A(6)(a). An Entity is
‘managed by’ another Entity if the managing Entity performs, either directly or through another service
provider, any of the activities or operations described in subparagraph A(6)(a) on behalf of the managed
Entity. However, an Entity does not manage another Entity if it does not have discretionary authority to
manage the Entity’s assets (in whole or part). Where an Entity is managed by a mix of Financial Institutions,

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NFEs or individuals, the Entity is considered to be managed by another Entity that is a Depository
Institution, a Custodial Institution, a Specified Insurance Company, or an Investment Entity described in
subparagraph A(6)(a), if any of the managing Entities is such another Entity. For example, a private trust
company that acts as a registered office or registered agent of a trust or performs administrative services
unrelated to the Financial Assets, Relevant Crypto-Assets or money of the trust, does not conduct the
activities and operations described in subparagraph (A)(6)(a) on behalf of the trust and thus the trust is not
“managed by” the private trust company within the meaning of subparagraph (A)(6)(b). Also, an Entity that
invests all or a portion of its assets in a mutual fund, exchange traded fund, or similar vehicle will not be
considered “managed by” the mutual fund, exchange traded fund, or similar vehicle. In both of these
examples, a further determination needs to be made as to whether the Entity is managed by another Entity
for the purpose of ascertaining whether the first-mentioned Entity falls within the definition of Investment
Entity, as set out in subparagraph (A)(6)(b).
18. An Entity is treated as primarily conducting as a business one or more of the activities described in
subparagraph A(6)(a), or an Entity’s gross income is primarily attributable to investing, reinvesting, or
trading in Financial Assets or Relevant Crypto-Assets for purposes of subparagraph A(6)(b), if the Entity’s
gross income attributable to the relevant activities equals or exceeds 50 per cent of the Entity’s gross
income during the shorter of:

the three-year period ending on 31 December of the year preceding the year in which the
determination is made; or

the period during which the Entity has been in existence.

As clarified in paragraph 10ter, above, for the purposes of the gross income test, all remuneration for the
relevant activities of an Entity is to be taken into account, independent of whether that remuneration is paid
directly to the Entity to which the test is applied or to another Entity.
19. The term “Investment Entity”, as defined in subparagraph A(6), does not include an Entity that is an
Active NFE because it meets any of the criteria in subparagraphs D(9)(d) through (g) (i.e. holding NFEs
and treasury centres that are members of a nonfinancial group; start-up NFEs; and NFEs that are
liquidating or emerging from bankruptcy).
20. An Entity would generally be considered an Investment Entity if it functions or holds itself out as a
collective investment vehicle, mutual fund, exchange traded fund, private equity fund, hedge fund, venture
capital fund, leveraged buy-out fund or any similar investment vehicle established with an investment
strategy of investing, reinvesting, or trading in Financial Assets or Relevant Crypto-Assets. An Entity that
primarily conducts as a business investing, administering, or managing non-debt, direct interests in real
property on behalf of other persons, such as a type of real estate investment trust, will not be an Investment
Entity.
[…]
Financial Asset
[…]
24. Within that context, subparagraph A(7) provides that the term “Financial Asset” includes a security (for
example, a share of stock in a corporation; partnership or beneficial ownership interest in a widely held or
publicly traded partnership or trust; note, bond, debenture, or other evidence of indebtedness), partnership
interest, commodity, swap (for example, interest rate swaps, currency swaps, basis swaps, interest rate
caps, interest rate floors, commodity swaps, equity swaps, equity index swaps, and similar agreements),
Insurance Contract or Annuity Contract, or any interest (including a futures or forward contract or option)
in a security, Relevant Crypto-Asset, partnership interest, commodity, swap, Insurance Contract, or
Annuity Contract. However, the term “Financial Asset” does not include a non-debt, direct interest in real
property; or a commodity that is a physical good, such as wheat.

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[…]
25bis. In each case, the determination of whether an asset is a Financial Asset is independent from the
form in which such asset is issued. Therefore, an asset issued in the form of a Crypto-Asset may
simultaneously be a Financial Asset.
[…]
Specified Electronic Money Product
29bis. Subparagraph A(9) defines the term “Specified Electronic Money Product” as any product that is:
a) a digital representation of a single Fiat Currency;
b) issued on receipt of funds for the purpose of making payment transactions;
c) represented by a claim on the issuer denominated in the same Fiat Currency;
d) accepted in payment by a natural or legal person other than the issuer; and
e) by virtue of regulatory requirements to which the issuer is subject, redeemable at any time and
at par value for the same Fiat Currency upon request of the holder of the product.
The term “Specified Electronic Money Product” does not include a product created for the sole
purpose of facilitating the transfer of funds from a customer to another person pursuant to
instructions of the customer. A product is not created for the sole purpose of facilitating the transfer
of funds if, in the ordinary course of business of the transferring Entity, either the funds connected
with such product are held longer than 60 days after receipt of instructions to facilitate the transfer,
or, if no instructions are received, the funds connected with such product are held longer than 60
days after receipt of the funds.
29ter. Subparagraph A(9)(a) requires that a product must be a digital representation of a single Fiat
Currency, in order to be a Specified Electronic Money Product. A product will be considered to digitally
represent and reflect the value of the Fiat Currency that it is denominated in. Consequently, a product that
reflects the value of multiple currencies or assets is not a Specified Electronic Money Product.
29quater. Subparagraph A(9)(b) provides that the product must be issued on receipt of funds. This part of
the definition means that a Specified Electronic Money Products is a prepaid product. The act of “issuing”
is interpreted broadly to include the activity of making available pre-paid stored value and means of
payment in exchange for funds. In this respect, both electronically and magnetically stored products may
be “issued”, including online payment accounts and physical cards using magnetic stripe technology. In
addition, this subparagraph provides that the product must be issued for the purpose of making payment
transactions.
29quinquies. Subparagraph A(9)(c) requires that, in order to be a Specified Electronic Money Product, a
product must be represented by a claim on the issuer denominated in the same Fiat Currency. In this
respect, a “claim” includes any monetary claim against the issuer, reflecting the value of the Fiat Currency
represented by the electronic money product issued to the customer.
29sexies. Under subparagraph A(9)(d), a product must be accepted by a natural or legal person other
than the issuer in order to be a Specified Electronic Money Product, whereby such third parties must accept
the electronic money product as a means of payment. Consequently, monetary value stored on specific
pre-paid instruments, designed to address precise needs that can be used only in a limited way, because
they allow the electronic money holder to purchase goods or services only in the premises of the electronic
money issuer or within a limited network of service providers under direct commercial agreement with a
professional issuer, or because they can be used only to acquire a limited range of goods or services, are
not considered Specified Electronic Money Products.
29septies. Subparagraph A(9)(e) provides that the issuer of the product must be subject to supervision to
ensure the product is redeemable at any time and at par value for the same Fiat Currency upon request of
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the holder of the product, in order to be a Specified Electronic Money Product. In this respect, the “same”
Fiat Currency refers to the Fiat Currency that the electronic money product is a digital representation of.
When proceeding to a redemption, it is acknowledged that the issuer can deduct from the redemption
amount any fees or transaction costs.
29octies. The definition excludes those products that are created solely to facilitate a funds transfer
pursuant to instructions of a customer and that cannot be used to store value. For example, such products
may be used to enable an employer to transfer the monthly wages to its employees or to enable a migrant
worker to transfer funds to relatives living in another country. A product is not created for the sole purpose
of facilitating the transfer of funds if, in the ordinary course of business of the transferring Entity, either the
funds connected with such product are held longer than 60 days after receipt of instructions to facilitate
the transfer, or, if no instructions are received, the funds connected with such product are held longer than
60 days after receipt of the funds.
Central Bank Digital Currency, Fiat Currency, Crypto-Asset, Relevant Crypto-Asset, and Exchange
Transaction
The terms “Central Bank Digital Currency”, “Fiat Currency”, “Crypto-Asset”, “Relevant Crypto-Asset”, and
“Exchange Transaction” should be interpreted consistently with the Commentary of the Crypto-Asset
Reporting Framework.
[…]

Paragraph B – Non-Reporting Financial Institution
[…]

Subparagraph B(1) – In general
30. Subparagraph B(1) sets out the various categories of Non-Reporting Financial Institutions (i.e.
Financial Institutions that are excluded from reporting). “Non-Reporting Financial Institution” means any
Financial Institution that is:
a) a Governmental Entity, International Organisation or Central Bank, other than:
i.

with respect to a payment that is derived from an obligation held in connection with a
commercial financial activity of a type engaged in by a Specified Insurance Company,
Custodial Institution, or Depository Institution; or

ii.

with respect to the activity of maintaining Central Bank Digital Currencies for Account
Holders which are not Financial Institutions, Governmental Entities, International
Organisations or Central Banks.
[…]

Subparagraphs B(2) through (4) – Governmental Entity, International Organisation and
Central Bank
31. A Financial Institution that is a Governmental Entity, International Organisation or Central Bank is a
Non-Reporting Financial Institution, according to subparagraph B(1)(a), other than with respect to a
payment that is derived from an obligation held in connection with a commercial activity of a type engaged
in by a Specified Insurance Company, Custodial Institution, or Depository Institution. According to
subparagraph B(1)(a), a Financial Institution that is a Governmental Entity, International Organisation or
Central Bank is a Non-Reporting Financial Institution. However, under subparagraph B(1)(a)(i), the
exclusion does not apply with respect to a payment that is derived from an obligation held in connection
with a financial activity of a type engaged in by a Specified Insurance Company, Custodial Institution, or

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Depository Institution. Equally, under subparagraph B(1)(a)(ii), the exclusion does not apply with respect
to the activity of maintaining Central Bank Digital Currencies for Account Holders which are not Financial
Institutions, Governmental Entities, International Organisations or Central Banks. Thus, for example, a
Central Bank that conducts a financial activity, such as acting as an intermediary on behalf of persons
other than in the bank’s capacity as a Central Bank, is not a Non-Reporting Financial Institution under
subparagraph B(1)(a)(i) with respect to payments received in connection with an account held in
connection with such activity. Equally, under subparagraph B(1)(a)(ii), maintaining Central Bank Digital
Currencies for Account Holders which are not Financial Institutions, Governmental Entities, International
Organisations or Central Banks, is also an activity in respect of which a Central Bank is not a NonReporting Financial Institution.
[…]

Subparagraphs B(5) through (7) – Funds
36. Subparagraph B(5) defines the term “Broad Participation Retirement Fund” as a fund established to
provide retirement, disability, or death benefits, or any combination thereof, to beneficiaries that are current
or former employees (or persons designated by such employees) of one or more employers in
consideration for services rendered, provided that the fund:
a) does not have a single beneficiary with a right to more than five per cent of the fund’s assets;
b) is subject to regulation and provides information reporting to the tax authorities; and
c) satisfies at least one of the four requirements listed in subparagraph B(5)(c) (i.e. the fund is taxfavoured; most contributions are received from sponsoring employers; distributions or withdrawals
are only allowed upon the occurrence of specified events; and contributions by employees are
limited by amount).
36bis. Section VIII(B)(5)(a) requires that, in order for a Financial Institution to be able to qualify as a NonReporting Financial Institution under the Broad Participation Retirement Fund category, the Financial
Institution needs, inter alia, to ensure that it has no single beneficiary with a right to more than five percent
of the fund’s assets. In case the fund is compartmentalised into sub-funds that are in practice working as
separated pension products, including through the segregation of the assets, risks and income attributed
to such sub-funds, the test of whether a single beneficiary has a right to more than five percent of the
fund’s assets is to be applied at the level of each sub-fund.

Qualified Non-Profit Entity
36ter. Subparagraphs B(2) through B(9) contain the categories of Non-Reporting Financial Institutions:
“Governmental Entity”, “International Organisation”, “Central Bank”, “Broad Participation Retirement Fund”,
“Narrow Participation Retirement Fund”, “Pension Fund of a Governmental Entity, International
Organisation or Central Bank”, “Qualified Credit Card Issuer” and “Exempt Collective Investment Vehicle”.
36quater. In addition to these categories, jurisdictions may wish to also treat Qualified Non-Profit Entities
as Non-Reporting Financial Institutions. Any jurisdiction adopting this optional provision must have in place
appropriate legal and administration mechanisms to ensure that any Entity claiming the status of a
Qualified Non-Profit Entity is confirmed to fulfil the conditions of subparagraph D(9)(h) of Section VIII before
such Entity is treated as a Non-Reporting Financial Institution.
36quinquies. Examples of appropriate mechanisms include a detailed regulatory regime that indicates the
conditions pursuant to which an Entity can be treated as a Qualified Non-Profit Entity, where such Entities
are verified by a governmental authority as meeting such conditions. A mechanism could also be
appropriate if a Qualified Non-Profit Entity would need to obtain a favourable ruling from a governmental
or judicial authority on whether the Entity is a Qualified Non-Profit Entity. Similarly, a listing mechanism

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whereby Qualified Non-Profit Entities must request to be included on a state-run registry (e.g. in the
framework of obtaining a domestic qualification as a tax-exempt entity or to confirm the tax deductibility of
donations made to the charity), could be an appropriate mechanism. In any event, confirmation pursuant
to such a mechanism that an Entity fulfils the conditions of subparagraph D(9)(h) of Section VIII must be
obtained before such Entity can be considered a Qualified Non-Profit Entity and, hence, a Non-Reporting
Financial Institution.
36sexies. Provided the implementing jurisdiction wishes to include the Qualified Non-Profit Entity category
and has, or expects to have, the required appropriate legal and administrative verification mechanisms in
place, such jurisdiction may modify the section on Non-Reporting Financial Institutions by adding an
additional term, “Qualified Non-Profit Entity”, in subparagraphs B(1)(f) and B(10), that either contains a list
of the categories of domestic entities that meet the conditions of subparagraph B(10) or that generically
spells out the conditions, as follows:
B. Non-Reporting Financial Institution
1. The term “Non-Reporting Financial Institution” means any Financial Institution that is:
[…]
f) a Qualified Non-Profit Entity.
[…]
10. The term “Qualified Non-Profit Entity” means an Entity resident in [Jurisdiction] that has
obtained confirmation by the tax administration [or other governmental authority] of [Jurisdiction]
that such Entity meets all of the following conditions:
i) it is established and operated in [Jurisdiction] exclusively for religious, charitable,
scientific, artistic, cultural, athletic, or educational purposes; or it is established and
operated in [Jurisdiction] and it is a professional organisation, business league, chamber
of commerce, labour organisation, agricultural or horticultural organisation, civic league or
an organisation operated exclusively for the promotion of social welfare;
ii) it is exempt from income tax in [Jurisdiction];
iii) it has no shareholders or members who have a proprietary or beneficial interest in its
income or assets;
iv) the applicable laws of [Jurisdiction] or the Entity’s formation documents do not permit
any income or assets of the Entity to be distributed to, or applied for the benefit of, a private
person or a noncharitable Entity other than pursuant to the conduct of the Entity’s
charitable activities, or as payment of reasonable compensation for services rendered, or
as payment representing the fair market value of property which the Entity has purchased;
and
v) the applicable laws of [Jurisdiction] or the Entity’s formation documents require that,
upon the Entity’s liquidation or dissolution, all of its assets be distributed to a Governmental
Entity or other Entity that meets the conditions set out in i) to v), or escheat to the
government of [Jurisdiction] or any political subdivision thereof.

Paragraph C – Financial Account
[…]

Subparagraph C(2) – Depository Account
66. The term “Depository Account”[…] includes any commercial, checking, savings, time, or thrift account,
or an account that is evidenced by a certificate of deposit, thrift certificate, investment certificate, certificate
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of indebtedness, or other similar instrument maintained by a Depository Institution Financial Institution in
the ordinary course of a banking or similar business. A Depository Account also includes:
a) an amount held by an insurance company pursuant to a guaranteed investment contract or
similar agreement to pay or credit interest therein;
b) an account or notional account that represents all Specified Electronic Money Products held for
the benefit of a customer; and
c) an account that holds one or more Central Bank Digital Currencies for the benefit of a customer.
[…]
67bis. All Specified Electronic Money Products an Entity holds for the benefit of a customer are together
considered a Depository Account of that customer. For the purposes of determining the value of such
Depository Account, a Reporting Financial Institution is required to aggregate the value of all Specified
Electronic Money Products the Account Holder holds with the Reporting Financial Institution. Similarly, any
arrangement through which the Entity holds Central Bank Digital Currency for the benefit of a customer
will be regarded as a Depository Account. In cases where a Specified Electronic Money Product or Central
Bank Digital Currency has been issued as a Crypto-Asset, an Entity is considered to hold such asset for
the benefit of a customer to the extent it safekeeps or administers the instruments enabling control over
the asset (for example, private keys) and the Entity has the ability to manage, trade or transfer to third
parties the underlying asset on behalf of such customer.
[…]

Subparagraph C(3) – Custodial Account
68. Subparagraph C(3) defines the term “Custodial Account” as an account (other than an Insurance
Contract or Annuity Contract) for the benefit of another person that holds one or more Financial Assets.
68bis. An arrangement to safe keep or administer the instrument enabling control over one or more
Financial Assets issued in the form of a Crypto-Asset for the benefit of another person is also a Custodial
Account, to the extent that the Entity has the ability to manage, trade or transfer to third parties the
underlying Financial Assets on the person’s behalf.

Subparagraph C(4) – Equity Interest
69. The definition of the term “Equity Interest” specifically addresses interests in partnerships and trusts.
In the case of a partnership that is a Financial Institution, the term “Equity Interest” means a capital or
profits interest in the partnership. In the case of a trust that is a Financial Institution, an “Equity Interest” is
considered to be held by any person treated as a settlor or beneficiary of all or a portion of the trust, or any
other natural person exercising ultimate effective control over the trust. The same as for a trust that is a
Financial Institution is applicable for a legal arrangement that is equivalent or similar to a trust, or foundation
that is a Financial Institution.
70. Under subparagraph C(4), a Reportable Person will be treated as being a beneficiary of a trust if such
Reportable Person has the right to receive, directly or indirectly (for example, through a nominee), a
mandatory distribution or may receive, directly or indirectly, a discretionary distribution from the trust.
Indirect distributions by a trust may arise when the trust makes payments to a third party for the benefit of
another person. For example, instances where a trust pays the tuition fees or repays a loan taken up by
another person are to be considered indirect distributions by the trust. Indirect distributions also include
cases where the trust grants a loan free of interest or at an interest rate lower than the market interest rate
or at other non-arm’s length conditions. In addition, the write-off of a loan granted by a trust to its beneficiary
constitutes an indirect distribution in the year the loan is written-off. In all of the above cases the Reportable
Person will be person that is the beneficiary of the trust receiving the indirect distribution (i.e. in the above
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examples, the debtor of the tuition fees or the recipient of the favourable loan conditions). For these
purposes, a A beneficiary who may receive a discretionary distribution from the trust only will be treated
as a beneficiary of a trust if such person receives a distribution in the calendar year or other appropriate
reporting period (i.e. either the distribution has been paid or made payable). The same is applicable with
respect to the treatment of a Reportable Person as a beneficiary of a legal arrangement that is equivalent
or similar to a trust, or foundation.
71. Where Equity Interests are held through a Custodial Institution, the Custodial Institution is responsible
for reporting, not the Investment Entity. The following example illustrates how such reporting must be done:
Reportable Person A holds shares in investment fund L. A holds the shares in custody with custodian Y.
Investment fund L is an Investment Entity and, from its perspective, its shares are Financial Accounts (i.e.
Equity Interests in an Investment Entity). L must treat custodian Y as its Account Holder. As Y is a Financial
Institution (i.e. a Custodial Institution) and Financial Institutions are not Reportable Persons, such shares
are not object of reporting by investment fund L. For custodian Y, the shares held for A are Financial Assets
held in a Custodial Account. As a Custodial Institution, Y is responsible for reporting the shares it is holding
on behalf of A.
[…]

Subparagraphs C(9) through (16) – Preexisting and New, Individual and Entity Accounts
81. Subparagraphs C(9) through (16) contain the various categories of Financial Accounts classified by
reference to date of opening, Account Holder and balance or value: “Preexisting Account”, “New Account”,
“Preexisting Individual Account”, “New Individual Account”, “Preexisting Entity Account”, “Lower Value
Account”, “High Value Account” and “New Entity Account”.
82. First, a Financial Account is classified depending on the date of opening. Thus, a Financial Account
can be either a “Preexisting Account” or a “New Account”. Subparagraphs C(9) and (10) define those terms
as a Financial Account maintained by a Reporting Financial Institution as of [xx/xx/xxxx], and opened on
or after [xx/xx/xxxx] or if the account is treated as a Financial Account solely by virtue of the amendments
to the Common Reporting Standard, as of [effective date of the revised CRS-1 day] or opened on or after
[effective date of the revised CRS], respectively. However, when implementing the Common Reporting
Standard, jurisdictions are free to modify subparagraph C(9) in order to also include certain new accounts
of preexisting customers. In such a case, subparagraph C(9) should be replaced by the following:
9. The term “Preexisting Account” means:
a) a Financial Account maintained by a Reporting Financial Institution as of [xx/xx/xxxx] or, if the
account is treated as a Financial Account solely by virtue of the amendments to the Common
Reporting Standard, as of [effective date of the revised CRS-1 day];
b) any Financial Account of an Account Holder, regardless of the date such Financial Account was
opened, if:
i.

the Account Holder also holds with the Reporting Financial Institution (or with a Related
Entity within the same jurisdiction as the Reporting Financial Institution) a Financial
Account that is a Preexisting Account under subparagraph C(9)(a);

ii.

the Reporting Financial Institution (and, as applicable, the Related Entity within the same
jurisdiction as the Reporting Financial Institution) treats both of the aforementioned
Financial Accounts, and any other Financial Accounts of the Account Holder that are
treated as Preexisting Accounts under this subparagraph C(9)(b), as a single Financial
Account for purposes of satisfying the standards of knowledge requirements set forth in
paragraph A of Section VII, and for purposes of determining the balance or value of any of
the Financial Accounts when applying any of the account thresholds;

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iii.

with respect to a Financial Account that is subject to AML/KYC Procedures, the Reporting
Financial Institution is permitted to satisfy such AML/KYC Procedures for the Financial
Account by relying upon the AML/KYC Procedures performed for the Preexisting Account
described in subparagraph C(9)(a); and

iv.

the opening of the Financial Account does not require the provision of new, additional or
amended customer information by the Account Holder other than for purposes of the
Common Reporting Standard.

Subparagraph C(17) – Excluded Account
86. Subparagraph C(17) contains the various categories of Excluded Accounts (i.e. accounts that are not
Financial Accounts and are therefore excluded from reporting), which are:
a) retirement and pension accounts;
b) non-retirement tax-favoured accounts;
c) term life insurance contracts;
d) estate accounts;
e) escrow accounts;
ebis) low-value Specified Electronic Money Products
f) Depository Accounts due to not-returned overpayments; and
g) low-risk excluded accounts.
[…]
93. Subparagraph C(17)(e) generally refers to accounts where money is held by a third party on behalf of
transacting parties (i.e. escrow accounts). The accounts can be Excluded Accounts where they are
established in connection with any of the following:
[…]
e) a foundation or capital increase of a company provided that the account satisfies all the requirements
listed in subparagraph C(17)(e)(v).
94. An Excluded Account, as described in subparagraph C(17)(e)(ii), must be established in connection
with a sale, exchange, or lease of real or personal property. Defining the concept of real or personal
property by reference to the laws of the jurisdiction where the account is maintained will help to avoid
difficulties of interpretation over the question whether an asset or a right is to be regarded as real property
(i.e. immovable property), personal property or neither of them.
94bis. An “independent confirmation” means for the purposes of subparagraph C(17)(e)(v)(ii) a written
confirmation evidencing the company foundation or capital increase, such as an extract from the
commercial register or confirmation from the lawyer, notary, or other service provider facilitating the
transaction pursuant to the relevant law.
94ter. Subparagraph C(17)(e)(v)(iv) acknowledges that in some instances where the foundation of a
company fails, an account established for this purpose may also be used to make payments to various
service providers involved in the incorporation process. As a result, repayments made to persons who
contributed the amounts may be made net of service provider and similar fees, which for the purposes of
subparagraph C(17)(e)(v)(iv) includes amounts paid to lawyers, notaries, corporate registrars and other
payments required to facilitate the incorporation or capital contribution.
Low-value Specified Electronic Money Products

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94quater. Subparagraph C(17)(ebis) provides that a Depository Account representing all Specified
Electronic Money Products of an Account Holder, with a rolling average 90 day end-of-day aggregate
account balance or value during any period of 90 consecutive days that did not exceed USD 10,000 at any
day during the calendar year or other appropriate reporting period is an Excluded Account. The rolling
average 90 day end-of-day account balance or value during a period of 90 consecutive days must be
determined for every day and is obtained on a particular day by adding the end-of-day account balance of
each of the last 90 consecutive days and to then divide the sum obtained by 90, as illustrated by the
following example:

A Depository Account representing all Specified Electronic Money Products of an Account Holder
is created on 12 October of the year N. The end-of-day account balance or value is USD 10 over
the last 81 days of the year N (i.e. 12 October to 31 December), and USD 100,000 over the first 9
days of the year N+1 (i.e. 1 January to 9 January), the rolling average 90 day end-of day account
balance or value during a period of 90 consecutive days is (10*81)+(100,000*9)=900,810/90, i.e.
USD 10,009. Therefore, the threshold is exceeded on 9 January N+1 and the Depository Account
is not an Excluded Account as of that day. It will therefore be subject to CRS reporting in respect
of the year N+1. The Depository Account is an Excluded Account in respect of the year N.

[…]
Low-risk Excluded Accounts
[…]
103. The following examples illustrate the application of subparagraph C(17)(g):
[…]

Example 7 (Housing cooperative account): a type of account held by or on behalf of a group of
owners or by the condominium company for the purpose of paying the expenses of the
condominium or housing cooperative which meets the following requirements: (i) it is regulated in
domestic law as a specific account for covering the costs of a condominium or housing cooperative,
(ii) the account or the amounts contributed and/or kept in the account are tax-favoured, (iii) the
amounts in the account may only be used to pay for the expenses of the condominium or housing
cooperative and (iv) no single owner can annually contribute an amount that exceeds USD 50,000.
Where some of the above requirements (such as the Financial Account being tax-favoured or
contributions being limited to USD 50,000) are not met, substitute characteristics or restrictions
that assure an equivalent level of low risk could be considered, taking into account domestic
specificities. This may include features such as: (i) no more than 20% of the annual and total
contributions due in the year being attributable to a single person, (ii) the account being operated
by an independent professional, (iii) the amounts of the contributions and the use of the money
being decided by agreement of owners in accordance with the condominium’s or housing
cooperative’s constituting documents or (iv) disallowing withdrawals from the account for purposes
other than the expenses of the condominium or housing cooperative. Because there are overall,
substitute requirements that provide equivalent assurance that the account presents a low-risk of
tax evasion, this type of account could be defined in domestic law as an Excluded Account.

Paragraph D – Reportable Account
[…]

Subparagraph D(2) and (3) – Reportable Person and Reportable Jurisdiction Person
[…]

 

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Reportable Person
[…]
111. Subparagraph D(2) defines the term “Reportable Person” as a Reportable Jurisdiction Person other
than:
a) an Entity corporation the stock of which is regularly traded on one or more established securities
markets;
b) any Entity that is a Related Entity of an Entity corporation described previously;
[…]
112. Whether an Entity that is a corporation that is a Reportable Jurisdiction Person is a Reportable Person,
as described in subparagraph D(2)(i), can depend on the stock of that corporation being regularly traded
on one or more established securities markets. Stock is “regularly traded” if there is a meaningful volume
of trading with respect to the stock on an on-going basis, and an “established securities market” means an
exchange that is officially recognised and supervised by a governmental authority in which the market is
located and that has a meaningful annual value of shares traded on the exchange.
113. With respect to each class of stock of the corporation, there is a “meaningful volume of trading on an
on-going basis” if (i) trades in each such class are effected, other than in de minimis quantities, on one or
more established securities markets on at least 60 business days during the prior calendar year; and (ii)
the aggregate number of shares in each such class that are traded on such market or markets during the
prior year are at least 10% of the average number of shares outstanding in that class during the prior
calendar year. For the purposes of the Standard, “each share class of the stock of the corporation” means
one or more classes of the stock of the corporation that (i) were listed on one or more established securities
markets during the prior calendar year and (ii), in aggregate, represent more than 50% of (a) the total
combined voting power of all class of stock of such corporation entitled to vote and (b) the total value of
the stock of such corporation.
[…]

Subparagraphs D(6) through (9) – NFE and Controlling Persons
[…]
125. Subparagraph D(9)(a) describes the criterion to qualify for the Active NFE status for “active NFEs by
reason of income and assets” as follows: less than 50% of the NFE’s gross income for the preceding
calendar year or other appropriate reporting period is passive income and less than 50% of the assets held
by the NFE during the preceding calendar year or other appropriate reporting period are assets that
produce or are held for the production of passive income. The test of whether an asset is held for the
production of passive income does not require that passive income is actually produced in the period
concerned. Instead, the asset must be of the type that produces or could produce passive income. For
example, cash should be viewed as producing or being held for the production of passive income (interest)
even if it does not actually produce such income.
126. In determining what is meant by “passive income”, reference must be made to each jurisdiction’s
particular rules. Passive income would generally be considered to include the portion of gross income that
consists of:
a) dividends;
b) interest;
c) income equivalent to interest or dividends;

 

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d) rents and royalties, other than rents and royalties derived in the active conduct of a business
conducted, at least in part, by employees of the NFE;
e) annuities;
f) income derived from Relevant Crypto-Assets;
fg) the excess of gains over losses from the sale or exchange of Financial Assets or Relevant
Crypto-Assets;
gh) the excess of gains over losses from transactions (including futures, forwards, options, and
similar transactions) in any Financial Assets or Relevant Crypto-Assets;
hi) the excess of foreign currency gains over foreign currency losses;
ij) net income from swaps; or
jk) amounts received under Cash Value Insurance Contracts.
Notwithstanding the foregoing, passive income will not include, in the case of a NFE that regularly acts as
a dealer in Financial Assets or Relevant Crypto-Assets, any income from any transaction entered into in
the ordinary course of such dealer’s business as such a dealer. Further, income received on assets to
invest the capital of an insurance business can be treated as active income.
126bis. To facilitate effective implementation of the Standard, a jurisdiction’s definition of passive income
should in substance be consistent with the list provided in paragraph 126. Each jurisdiction may define in
its particular rules the items contained in the list of passive income (such as, income equivalent to interest
and dividends) consistent with domestic rules.
[…]

Paragraph E – Miscellaneous
Subparagraph E(1) – Account Holder
140. With respect to a jointly held account, each joint holder is treated as an Account Holder for purposes
of determining whether the account is a Reportable Account. Thus, an account is a Reportable Account if
any of the Account Holders is a Reportable Person or a Passive NFE with one or more Controlling Persons
who are Reportable Persons. When more than one Reportable Person is a joint holder, each Reportable
Person is treated as an Account Holder and is attributed the entire balance of the jointly held account,
including for purposes of applying the aggregation rules set forth in subparagraphs C(1) through (3) of
Section VII. In the case of an account for which ownership rights are split between the bare owner and a
usufructuary, both the bare owner and the usufructuary may be considered as joint Account Holders or as
Controlling Persons of a trust for due diligence and reporting purposes.
141. In the case of a Cash Value Insurance Contract or an Annuity Contract, the Account Holder is any
person entitled to access the Cash Value or change the beneficiary of the contract. If no person can access
the Cash Value or change the beneficiary, the Account Holder is any person named as the owner in the
contract and any person with a vested entitlement to payment under the terms of the contract. Upon the
maturity of a Cash Value Insurance Contract or an Annuity Contract (i.e. when obligation to pay an amount
under the contract becomes fixed), each person entitled to receive a payment under the contract is treated
as an Account Holder. Persons that have the right to access the Cash Value or the right to change the
beneficiaries of the contract are to be considered Account Holders with respect to the Cash Value
Insurance Contract in all instances, unless they have finally, fully and irrevocably renounced both the right
to access the Cash Value and the right to change the beneficiaries of the Cash Value Insurance Contract.
142. The following examples illustrate the application of subparagraph E(1):

 

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Example 1 (Account held by agent): F holds a power of attorney from U, a Reportable Person, that
authorises F to open, hold, and make deposits and withdrawals with respect to a Depository
Account on behalf of U. The balance of the account for the calendar year is USD 100 000. F is
listed as the holder of the Depository Account at a Reporting Financial Institution, but because F
holds the account as an agent for the benefit of U, F is not ultimately entitled to the funds in the
account. Because the Depository Account is treated as held by U, a Reportable Person, the
account is a Reportable Account.

Example 2 (Jointly held accounts): U, a Reportable Person, holds a Depository Account in a
Reporting Financial Institution. The balance of the account for the calendar year is USD 100,000.
The account is jointly held with A, an individual who is not a Reportable Person. Because one of
the joint holders is a Reportable Person, the account is a Reportable Account.

Example 3 (Jointly held accounts): U and Q, both Reportable Persons, hold a Depository Account
in a Reporting Financial Institution. The balance of the account for the calendar year is USD
100,000. The account is a Reportable Account and both U and Q are treated as Account Holders
of the account.

[…]

Subparagraphs E(3) and (4) – Entity and Related Entity
144. Subparagraph E(3) defines the term “Entity” as a legal person or a legal arrangement. This term is
intended to cover any person other than an individual (i.e. a natural person), in addition to any legal
arrangement. Thus, e.g. a corporation, partnership, trust, fideicomiso, foundation (fondation, Stiftung),
company, co-operative, association, or asociación en participación, falls within the meaning of the term
“Entity”.
145. An Entity is a “Related Entity” of another Entity, as defined in subparagraph E(4), if either Entity
controls the other Entity, or the two Entities are under common control. For this purpose control includes
direct or indirect ownership of more than 50% of the vote and value in an Entity. In this respect, Entities
are considered Related Entities if these Entities are connected through one or more chains of ownership
by a common parent Entity and if the common parent Entity directly owns more than 50% of the stock or
other equity interest in at least one of the other Entities. A chain of ownership is to be understood as the
ownership by one or more Entities of more than 50 percent of the total voting power of the stock of an
Entity and more than 50 percent of the total value of the stock of an Entity, as illustrated by the following
example:
Entity A owns 51% of the total voting power and 51% of the total value of the stock of Entity B. Entity B on
its turn owns 51% of the total voting power and 51% of the total value of the stock of Entity C. Entities A
and C are considered “Related Entities” pursuant to subparagraph E(4) of Section VIII because Entity A
has a direct ownership of more than 50 percent of the total voting power of the stock and more than 50
percent of total value of the stock of Entity B, and because Entity B has a direct ownership of more than
50 percent of the total voting power of the stock and more than 50 percent of total value of the stock of
Entity C. Entities A and C are, hence, connected through chains of ownership. Notwithstanding the fact
that Entity A proportionally only owns 26 percent of the total value of the stock and voting rights of Entity
C, Entity A and Entity C are Related Entities.
Whether an Entity is a Related Entity of another Entity is relevant for the account balance aggregation
rules set forth in paragraph C of Section VII, the scope of the term “ Reportable Person” described in
subparagraph D(2)(ii), and the criterion described in subparagraph D(9)(b) that an NFE can meet to be an
Active NFE.

 

100 |
Subparagraph E(5) – TIN
146. According to subparagraph E(5), the term “TIN” means Taxpayer Identification Number (or functional
equivalent in the absence of a Taxpayer Identification Number). A Taxpayer Identification Number is a
unique combination of letters or numbers, however described, assigned by a jurisdiction to an individual
or an Entity and used to identify the individual or Entity for purposes of administering the tax laws of such
jurisdiction.
147. TINs are also useful for identifying taxpayers who invest in other jurisdictions. TIN specifications (i.e.
structure, syntax, etc.) are set by each jurisdiction’s tax administrations. Some jurisdictions even have a
different TIN structure for different taxes or different categories of taxpayers (e.g. residents and nonresidents).
148. While many jurisdictions utilise a TIN for personal or corporate taxation purposes, some jurisdictions
do not issue a TIN. However, these jurisdictions often utilise some other high integrity number with an
equivalent level of identification (a “functional equivalent”). Examples of that type of number include, for
individuals, a social security/insurance number, citizen/personal identification/service code/number, and
resident registration number; and for Entities, a business/company registration code/number. In addition,
some jurisdictions may also offer Government Verification Services for the purpose of ascertaining the
identity and tax residence of an Account Holder or Controlling Person. In this respect, a unique reference
number, code or other confirmation received by a Reporting Financial Institution in respect of an Account
Holder or Controlling Person via a Government Verification Service is also a functional equivalent to a TIN.
149. Participating Jurisdictions are expected to provide Reporting Financial Institutions with information
with respect to the issuance, collection and, to the extent possible and practical, the structure and other
specifications of taxpayer identification numbers and their functional equivalents for the purposes of the
CRS. The OECD will endeavour to facilitate its dissemination. Such information will facilitate the collection
of accurate TINs by Reporting Financial Institutions.
[…]
Subparagraph E(7) – Government Verification Service
163. Subparagraph E(7) defines a “Government Verification Service” as an electronic process made
available by a Reportable Jurisdiction to a Reporting Financial Institution for the purposes of ascertaining
the identity and tax residence of an Account Holder or Controlling Person.
164. Such services may include the use of Application Programming Interfaces (APIs) and any other
government-authorised solutions that allow Reporting Financial Institutions to confirm the identity and tax
residence of an Account Holder or Controlling Person.
165. Where a tax administration opts for identification of Account Holders or Controlling Persons based on
an API solution, it would normally make an API portal accessible to Reporting Financial Institutions.
Subsequently, if the Account Holder’s or Controlling Person’s self-certification indicates residence in that
jurisdiction, the Reporting Financial Institution can direct the Account Holder or Controlling Person to the
API portal which would allow the jurisdiction to identify the Account Holder or Controlling Person based on
its domestic taxpayer identification requirements (for example a government ID or username). Upon
successful identification of the Account Holder or Controlling Person as a taxpayer of that jurisdiction, the
jurisdiction, via the API portal, would provide the Reporting Financial Institution with a unique reference
number or code allowing the jurisdiction to match the Account Holder or Controlling Person to a taxpayer
within its database. Where the Reporting Financial Institution subsequently reports information concerning
that Account Holder or Controlling Person, it would include the unique reference number or code to allow
the jurisdiction receiving the information to enable matching of the Account Holder or Controlling Person.

 

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166. For the purposes of subparagraph E(5), a unique reference number, code or other confirmation
received by a Reporting Financial Institution in respect of an Account Holder or Controlling Person via a
Government Verification Service is equivalent to a TIN.
167. Participating Jurisdictions are expected to provide Reporting Financial Institutions with information
with respect to any Government Verification Services such jurisdictions have made available. The OECD
will endeavour to facilitate its dissemination.

Commentary on Section IX
[…]
2. Under Section IX, a jurisdiction must have rules and administrative procedures in place to ensure the
effective implementation of, and compliance with, the reporting and due diligence procedures set out in
the Common Reporting Standard. The Standard will not be considered effectively implemented unless it
is adopted in good faith with consideration to its Commentary which seeks to promote its consistent
application across jurisdictions. It is therefore acknowledged that effective implementation of the Common
Reporting Standard may in some instances also necessitate reflecting parts of the Commentary in binding
rules. Since the application of the CRS requires that it be translated into domestic law, there may be
differences in domestic implementation. Therefore, in the cross-border context, reference needs to be
made to the law of the implementing jurisdiction. For example, the question may arise whether a particular
Entity that is resident in a Participating Jurisdiction and has a Financial Account in another Participating
Jurisdiction, meets the definition of “Financial Institution”. The Entity may meet the “substantial portion”
test to be a Custodial Institution in one Participating Jurisdiction, but different measurement techniques for
gross income may mean that the Entity does not meet such test in another Participating Jurisdiction. In
such a case, the classification of the Entity ought to be resolved under the law of the Participating
Jurisdiction in which the Entity is resident. If an Entity is resident in a jurisdiction that has not implemented
the Common Reporting Standard, the rules of the jurisdiction in which the account is maintained determine
the Entity’s status as a Reporting Financial Institution or NFE since there are no other rules available.
Further, when determining an Entity’s status as an Active or Passive NFE, the rules of the jurisdiction in
which the account is maintained determine the Entity’s status. However, a jurisdiction in which the account
is maintained may permit (e.g. in its domestic implementation guidance) an Entity to determine its status
as an Active or Passive NFE under the rules of the jurisdiction in which the Entity is resident provided that
the jurisdiction in which the Entity is resident has implemented the Common Reporting Standard.
[…]
18. Subparagraph A(5) requires that a jurisdiction must have effective enforcement provisions to address
non-compliance. In some cases, the anti-avoidance rule described in Subparagraph A(1) may be broad
enough to cover enforcement. In other cases, there may be separate or more specific rules that address
certain enforcement issues on a narrower basis. For example, a jurisdiction may have rules that provide
for the imposition of fines or other penalties where a person does not provide information requested by the
tax authority. Further, given that obtaining a self-certification for New Accounts is a critical aspect of
ensuring that the CRS is effective, it is expected that jurisdictions have strong measures in place to ensure
that valid self-certifications are always obtained for New Accounts, including New Accounts documented
on the basis of paragraph Abis of Section VII. What will constitute a “strong measure” in in this context
may vary from jurisdiction to jurisdiction and should be evaluated in light of the actual results of the
measure. The crucial test for determining what measures can qualify as “strong measures” is whether the
measures have a strong enough impact on Account Holders and/or Reporting Financial Institutions to
effectively ensure that self-certifications are obtained and validated in accordance with the rules set out in
the Common Reporting Standard. An effective way to achieve this outcome would be to introduce
legislation making the opening of a New Account conditional upon the receipt of a valid self-certification in

102 |
the course of account opening procedures. Other jurisdictions may choose different methods, taking into
account their domestic law. This could include, for example, imposing significant penalties on Account
Holders that fail to provide a self-certification, or on Reporting Financial Institutions that do not take
appropriate measures to obtain a self-certification upon account opening, or closing or freezing of the
account after the expiry of 90 days.

Commentary on Section X
1. Paragraph A of Section X contains the general effective date in respect of the amendments to the
Common Reporting Standard, i.e. [xx/xx/xxxx].
2. Paragraph B contains a limited exception to the general effective date for reporting on the role(s) by
virtue of which each Reportable Person is a Controlling Person or Equity Interest holder of the Entity with
respect to Financial Accounts opened prior to the effective date of the revised Common Reporting
Standard: in respect of reporting periods ending by the second calendar year following the effective date
of the revised CRS the Reporting Financial Institution is only required to report such information if it is
available in its electronically searchable data.